Polymarket has reportedly blocked access to the betting site in France, although it’s been shown that access is possible through a VPN.
Polymarket has recently restricted access for traders in France in response to an investigation by French regulators.
The company offers a prominent crypto-based prediction market platform that became a target of significant debate ahead of the US elections.
The move, which took effect on 22 November, was communicated via a pop-up message to users. The notice informed them that trading services were unavailable to individuals in France, the US, and other restricted jurisdictions.
The French gambling regulator ANJ is reportedly conducting the investigation, examining Polymarket’s compliance with the country’s gambling laws. The scrutiny comes after a series of high-profile incidents tied to the platform, including significant activity during the 2024 US presidential election.
During that period, Polymarket saw record-breaking betting volumes, particularly outside the US. In total, based on some reports, the platform recorded over $3bn in bets on the US presidential election alone.
An anonymous French user allegedly placed $28m in bets on Donald Trump’s re-election across four accounts. That reportedly produced a windfall for the trader, only known as Fredi9999, who is expected to net around $85m according to Bloomberg.
This level of participation, especially from a single individual, raised red flags, both in terms of potential insider trading and regulatory compliance. French authorities have since intensified their focus on the platform, leading to the current restrictions.
Smoke and mirrors
While Polymarket has implemented a ban on French traders, concerns about the effectiveness of the measure have surfaced. Journalist Grégory Raymond reported on X (formerly Twitter) that he successfully circumvented the restriction by using a virtual private network (VPN).
This workaround suggests that the ban may be more symbolic than practical, raising questions about enforcement mechanisms in the digital age.
Despite the halt on new trades for French users, Polymarket continues to provide access to its informational content. A spokesperson for the platform told media outlet Decrypt that French users could still use the site to gather critical insights on major events, but would not be able to place bets until further notice.
This step was described as a proactive measure while the company engages with French stakeholders to address concerns related to prediction markets and regulatory compliance.
Prediction markets’ future hangs in the balance
The move to limit trading activity has sparked debates about the role of prediction markets in financial systems and their regulatory oversight. Prediction markets allow users to wager on the outcomes of future events, often offering insights into public sentiment or probabilities.
Polymarket’s challenges in France are part of a broader pattern of regulatory scrutiny faced by crypto platforms worldwide. Governments and regulatory bodies are increasingly grappling with how to address the intersection of blockchain technology, financial markets, and local laws.
For platforms like Polymarket, the path forward will involve navigating diverse regulatory landscapes. The company will also have to implement measures to ensure compliance without undermining the core appeal of decentralised markets.