Romania’s financial regulator has taken a strong stance against leading prediction market platform Polymarket, formally banning it from operating in the country. The move highlights the growing global scrutiny of online crypto-based betting and prediction platforms, especially during high-stakes political events.
- The Romanian National Gambling Authority (ONJN) classifies Polymarket as an unauthorized gambling site.
- Regulators highlight that Polymarket’s trading volume soared during the recent election, exceeding $600 million.
- Authorities have stressed that the platform’s “counterpart betting” model falls under gambling law, regardless of the use of blockchain.
- Several countries, including Belgium and France, have already restricted access to polymarkets.
- Polymarket plans to resume trading in the US, initially focusing on the sports market, following favorable regulatory developments.
Romania’s National Gambling Authority (ONJN) has officially blacklisted Polymarket, a prominent prediction market that allows users to bet on future events, for operating as an unlicensed gambling platform. The decision comes amid growing concerns over crypto-based gambling during the recent election cycle, with Polymarket’s trading volume reportedly exceeding $600 million.
ONJN claims that Polymarket’s “counterpart betting” model – where users bet against each other on future outcomes – falls fully within Romania’s gambling regulations. The regulator has made it clear that regardless of whether bets are placed using fiat currency or cryptocurrencies, they are legal gambling activities that require an appropriate license. ONJN Chairman Vlad Cristian Soare emphasized that the issue is not about technology but legal compliance, saying: “The issue is about the law, not about the blockchain infrastructure of the platform.”
Authorities cited violations such as lack of financial reporting, lack of player protection mechanisms and inadequate anti-money laundering measures as reasons for the ban.
Although Polymarket advertises itself as an “event trading” platform, ONJN concluded that its operating structure, in which users bet on the outcome of unpredictable events and the platform earns commissions, meets legal standards for gambling. As a result, Romanian internet providers are now required to block access to the platform.
The regulator’s crackdown mirrors similar actions taken elsewhere. In 2022, Polymarket was fined by the US Commodity Futures Trading Commission (CFTC) for operating an unregistered derivatives market, leading to restrictions for US users. Other jurisdictions, such as Belgium, France, Poland, Singapore, and Thailand, have also prohibited or imposed restrictions on access to the Platform.
Despite these global restrictions, Polymarket has managed to attract significant investment and was recently valued at $2 billion by Intercontinental Exchange, the parent company of the New York Stock Exchange. The platform is currently preparing to resume trading in the US, with an initial focus on sports-related markets, tentatively scheduled to launch by the end of November.
The relaunch comes on the heels of a recent no-action letter from the CFTC to another crypto derivatives exchange owned by Polymarket, effectively clearing regulatory hurdles for the company’s U.S. operations. As cryptocurrency regulations continue to tighten around the world, platforms like Polymarket are navigating the complexities of compliance and market expansion.