Polymarket, a blockchain-based prediction market, was blocked in Singapore because authorities considered it a gambling platform.
This is another challenge for the platform, which is already under regulatory scrutiny in the US.
Why Does Singapore Block Polymarket?
On January 12, Alex Zuo, Vice President of Investment and Custody at Cobo Global, revealed on X (formerly Twitter) that Singapore has officially recognized Polymarket as a gambling website. This has resulted in access to the platform being restricted in the country.
Zuo states that individuals in Singapore are only allowed to bet through state-authorized gambling operators. Violators could face fines or jail time.
“Polymarket is officially defined as a gambling website in Singapore. If you want to bet, you can only go to state-owned gambling companies, otherwise you will face fines and prison,” Zuo speak.
Zuo shared screenshots showing that Polymarket visitors in Singapore were receiving warnings. Authorities warn users to stay away from unlicensed gambling services, threatening penalties of up to $10,000, six months in prison, or both.
Polymarket, launched in 2020, is known for its unique approach to aggregating public opinion and real-time data. The platform allows users to bet on the outcomes of current events, such as elections and natural disasters. It has attracted high-profile backers, including billionaire investor Peter Thiel.
Extensive Management Pressure
Polymarket’s challenge is not limited to Singapore. The platform has faced significant regulatory pressure in other jurisdictions, including France and the United States.
In France, the National Gaming Authority (ANJ) investigated Polymarket’s operations. This investigation was prompted after a user in France placed a large bet on the 2024 US presidential election. French law strictly regulates online gambling, allowing only certain sports betting activities. sports and poker.
In the United States, Polymarket has faced even greater scrutiny. The Commodity Futures Trading Commission (CFTC) recently subpoenaed Coinbase, seeking information about users’ interactions with Polymarket.
This comes after the platform was fined $1.4 million by the CFTC for allegedly offering unregistered prediction markets. In a settlement, Polymarket agreed to cease operations for US users.
However, the US Department of Justice launched its own investigation, alleging that Polymarket may have accepted transactions from US users despite a standstill agreement. The FBI also examined CEO Shayne Coplan’s devices as part of the investigation.
