The National Gaming Authority (ANJ) plans to block access to crypto betting platform Polymarket in France. The move comes after record bets during the US presidential election, including a spectacular $47 million win made by a French trader on Donald Trump's victory.
France takes action against Polymarket after massive Trump bets
The ANJ has launched an in-depth investigation into Polymarket's activities in France following the explosion in transaction volumes during the US election period. The platform, which has recorded over $3.5 billion in trading, allows users to bet on political events via cryptos, without requiring strict identity verification.
The case of French trader “Théo”, who made a historic gain of $47 million by betting on Trump's victory, particularly attracted the attention of regulators. This record transaction raises questions about the risks of market manipulation and insider trading.
The French authority is now considering blocking the platform's domain names and restricting its promotion in national media, although these measures can be circumvented through the use of VPNs.
A decision motivated by major crypto regulatory issues
The growing popularity of Polymarket poses a real headache for international regulators. Moreover, in the United States, the CFTC had already opened an investigation in 2021 into possible regulatory violations. More recently, a bipartisan group of American senators called for a ban on electoral betting on these platforms.
Furthermore, the blockchain technology that underpins Polymarket makes its control particularly complex. Without a traditional intermediary and with possible decentralization via a future token, the platform could become even more difficult to regulate.
The authorities are particularly concerned about the influence that massive betting could have on public opinion. A group of American legislators, including Senators Elizabeth Warren and Richard Blumenthal, particularly highlighted the risk of seeing billionaires using these platforms to influence electoral results.
Regulators must now balance financial innovation with protecting democratic processes as decentralized prediction markets continue to grow in popularity.
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