Polymarket, a blockchain-powered prediction market, has been reportedly blocked in Singapore because the authorities classify it as a gambling platform.
This marks another significant challenge for the platform, which is already under regulatory scrutiny in the United States.
Why Did Singapore Block Polymarket?
On January 12, Alex Zuo, Vice President of Investment and Custody at Cobo Global, revealed on X (formerly Twitter) that Singapore has officially designated Polymarket as a gambling site. This classification has led to restrictions on access within the country.
Zuo stated that individuals in Singapore must place bets only through state-authorized gambling operators. Those who fail to comply risk facing fines or imprisonment.
“Polymarket is officially defined as a gambling website in Singapore. If you want to place a bet, you can only go to a state-owned gambling company, otherwise you will face fines and imprisonment,” Zuo said.
Zuo shared screenshots showing that visitors trying to access Polymarket in Singapore receive warnings. Authorities warn users to avoid unlicensed gambling services, threatening penalties of up to $10,000, six months in jail, or both.
Polymarket, launched in 2020, is known for its unique approach to aggregating public opinion and real-time data. It allows users to wager on outcomes of current events, such as elections and natural disasters. The platform has attracted high-profile backers, including billionaire investor Peter Thiel.
Broader Regulatory Pressure
Polymarket’s challenges are not confined to Singapore. The platform has faced significant regulatory pressure in other jurisdictions, including France and the United States.
In France, the National Gaming Authority (ANJ) has been investigating Polymarket’s operations. This inquiry was triggered after a French user placed substantial bets on the 2024 US presidential election. French laws strictly regulate online gambling, permitting only certain sports betting and poker activities.
In the United States, Polymarket has faced even greater scrutiny. The Commodity Futures Trading Commission (CFTC) recently subpoenaed Coinbase, seeking information about user interactions with Polymarket.
This follows a $1.4 million fine imposed on the platform by the CFTC for allegedly offering unregistered prediction markets. As part of a settlement, Polymarket agreed to cease operations for US users.
Still, the US Department of Justice has launched its own investigation, alleging that Polymarket may have accepted trades from US users despite the settlement agreement. The FBI has also searched the devices of CEO Shayne Coplan as part of the inquiry.
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