Romania’s National Office for Gambling (ONJN) has officially blacklisted Polymarket, a leading blockchain-based prediction market, declaring it an unlicensed gambling platform operating outside state oversight. This decisive action comes after a significant surge in cryptocurrency-based wagering during Romania’s recent local and presidential elections, where Polymarket’s trading volume reached an astonishing $600 million (approximately ₹53,200 crore). Authorities have emphasized that regardless of the platform’s use of blockchain technology, its operational structure and activities fall squarely under the country’s existing gambling laws.
Global Scrutiny Intensifies for Crypto Betting Platforms
In an official statement, the ONJN clarified that Polymarket’s operations constitute “counterparty betting,” where users place wagers against each other on future events, with the platform profiting from commissions. ONJN President Vlad-Cristian Soara underscored that this decision is “not about technology, but about the law,” asserting that national gambling regulations apply universally, whether bets are made in cryptocurrency or the local Romanian leu. Consequently, Romanian internet service providers have been mandated to block local access to Polymarket’s website.
The ONJN highlighted several violations, including insufficient player protection measures, inadequate fiscal reporting, and a critical absence of anti-money laundering (AML) compliance systems. Despite Polymarket’s self-description as an “event trading” or “information market” platform, regulators firmly maintain that its activities meet the legal definition of gambling, given the direct monetary wagers placed by users and the platform’s central intermediary role. Romania’s move aligns with a growing international trend as more nations enhance their regulatory frameworks to address decentralized betting and blockchain-based financial services.
Polymarket is certainly no stranger to regulatory challenges. In 2022, the platform faced a hefty fine from the US Commodity Futures Trading Commission (CFTC) for operating unregistered derivatives markets, leading to a mandatory block on American users. Similar prohibitions are currently in place across France, Belgium, Poland, Singapore, and Thailand. Interestingly, despite these regulatory hurdles, Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, recently invested $2 billion (roughly ₹17,754 crore) in Polymarket, showcasing the platform’s continued ability to attract investment and expand its user base.
Looking ahead, Polymarket is reportedly preparing for a return to the US market, with a renewed focus on sports-related prediction markets. Recent reports suggest that, following a CFTC no-action letter issued to a crypto derivatives exchange now owned by Polymarket, the platform might resume limited trading for US users before the end of November. This potential comeback signifies a notable development for Polymarket, even as it navigates ongoing regulatory complexities worldwide.
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