Polymarket, a blockchain-based prediction platform, has been banned in Singapore for being an unlicensed gambling site. This action is in line with Singapore’s strict gambling regulations, which only permit betting through state-approved operators. The ban adds to Polymarket’s regulatory issues in the United States and France.
On January 12, Alex Zuo, Vice President of Investment and Custody at Cobo Global, announced on X (formerly Twitter) that Singapore had officially classified Polymarket as a gambling site, leading to restricted access.
Singaporean law mandates that bets must be placed only through licensed operators, with violations potentially resulting in fines up to $10,000, six months in jail, or both. Zuo shared screenshots showing warnings to Singaporean users trying to access Polymarket, advising them against using unlicensed services.
Launched in 2020, Polymarket allows users to bet on real-world events like elections and natural disasters. Its unique use of blockchain technology to gather public opinion has attracted notable investors, including billionaire Peter Thiel.
Polymarket has faced regulatory challenges before. In France, the National Gaming Authority (ANJ) is investigating the platform after a user placed large bets on the 2024 US presidential election. French laws tightly control online gambling, allowing only specific sports betting and poker.
In the US, Polymarket’s situation is more serious. The Commodity Futures Trading Commission (CFTC) has subpoenaed Coinbase for information on user interactions with Polymarket. The CFTC previously fined Polymarket $1.4 million for allegedly running unregistered prediction markets, leading to an agreement to stop serving US users.
Despite these actions, Polymarket is still under investigation in the US. The Department of Justice (DOJ) is looking into potential violations of the settlement agreement, while the FBI has searched CEO Shayne Coplan’s devices.
Polymarket’s innovative model has gained global attention, but its regulatory hurdles underscore the difficulties of operating in regions with strict gambling and financial laws.
