France considering Polymarket ban after local trader makes $80 million on Trump win

France’s gambling regulator, the National Gaming Authority (ANJ), is expected to block access to Polymarket, a major cryptocurrency-based prediction platform, local news outlet the Big Whale reported.

Such a move would be one of the country’s strongest regulatory moves against a crypto entity. Known for its blockchain-driven betting on global events, Polymarket gained widespread traction during the recent US presidential election, attracting more than $3.2 billion in worldwide wagers.

According to sources familiar with the matter, ANJ’s move comes amid mounting concerns over the platform’s classification as a gambling activity under French law.

On November 5 alone, users placed $294 million in bets on the platform. A source close to the ANJ stated:

“Polymarket’s model involves betting on uncertain outcomes, which under French regulations qualifies it as gambling, regardless of its crypto operations.”

While Polymarket operates out of the US and restricts access for American users, a French trader’s high-stakes $30 million bet on a Donald Trump election victory reportedly drew the ANJ’s attention. The trader netted roughly $80 million from several wagers on the outcome.

Polymarket’s unique model allows users to wager on predictions across various categories — from financial markets to political events — using crypto transactions on a decentralized blockchain network.

Launched in 2020, the platform has garnered $74 million in funding, with support from notable figures like Ethereum co-founder Vitalik Buterin. While the platform’s supporters advocate its use of blockchain to create a transparent prediction market, its lack of user identity checks poses regulatory challenges for authorities worldwide.

Under French law, the ANJ has the power to restrict non-compliant online gambling platforms, even if those platforms don’t directly target French users.

Lawyers told the news outlet that ANJ’s actions may include blocking Polymarket’s domain within France and discouraging media outlets and third-party platforms from linking to it. However, because Polymarket’s account setup requires only a crypto wallet and no personal identification, users could bypass restrictions by using VPNs.

The ANJ acknowledged it is “examining [Polymarket’s] operations and compliance with French gambling legislation” but did not specify a timeline for the anticipated restrictions.

Mentioned in this article