Polymarket, a decentralized prediction platform, has restricted access for French traders following an investigation into its compliance with gambling laws by the French National Gaming Authority, ANJ.
According to reports on Friday, French users attempting to access the platform via VPN encountered access blocks. This ban has not yet been officially added to Polymarket’s terms of service.
Polymarket Continues to Face Strict Censorship Pressure
The pressure stemmed from a French trader placing a large bet that Donald Trump would win the 2024 US presidential election, causing concerns about the platform’s operations in France.
On social networks, a French journalist stated clearly this restriction, bringing further attention to Polymarket’s legal challenges.
The platform, which allows cryptocurrency-based betting on political events, sports, and other outcomes, has become popular in the US presidential race.
Even if Polymarket uses cryptocurrency in its operations, it is still a betting activity and this is not legal in France – a source close to the National Gaming Authority (ANJ) explained to me,” French journalist Grégory Raymond wrote on X (formerly Twitter).
Reports show that users bet more than $3.2 billion during the election. The platform hit a trading volume record of $294 million on November 5. Before the results, Trump had a 67% probability on Polymarket to win.
However, subsequent research suggested that 30% of the platform’s trading activity may be related to fake transactions. The platform was allegedly used for repeat purchases to increase perceived market activity.
Such practices can distort public sentiment and encourage further betting.
Additionally, the platform is said to have paid out significant amounts of money to top bettors after the election. Three high-net-worth traders earned a total of $47 million. The largest single payout was $20.4 million.
In a post-election development, the FBI confiscated the electronic devices of Polymarket CEO Shayne Coplan. Sources allege the raid was related to allegations of market manipulation. No formal charges or arrests have been made.
Despite facing challenges from regulators, the platform recently reported plans to launch its own Token. The platform appears to be trying to maintain its popularity after the election fever is over. However, more legal challenges are expected.