Romania Blacklists Polymarket for Illegal Crypto Betting Operations

Romania’s National Office for Gambling blacklisted Polymarket, a blockchain prediction platform, for illicit crypto betting without a local license, involving $600 million in national election wagers.

This highlights regulatory pressures on crypto betting platforms, impacting market operations and potentially affecting liquidity and user access.

Polymarket Blacklisted for $600M in Illegal Wagers

Romania’s ONJN blacklisted Polymarket, citing illegal operation without a gambling license. The platform involved over $600 million in election wagers, classifying it as gambling rather than trading. Vlad-Cristian Soare, President, ONJN stated, “Regardless of whether you bet in lei or crypto, if you bet money on a future result under the conditions of a counterpart bet, we are talking about gambling that must be licensed.”

Polymarket, under founder Shayne Coplan, faces restrictions similar to previous actions in France, Belgium, and the U.S. The company’s licensing efforts remain challenged by EU regulations.

EU Regulatory Alignment Impacts Polymarket’s Operations

The ban affects Romanian access to Polymarket, potentially reducing liquidity and trading volumes. ONJN’s decision aligns with broader EU regulatory views on crypto-related activities.

This regulatory move underscores the importance of compliance, affecting financial operations and putting pressure on unlicensed platforms in the EU markets.

Previous Fines and Compliance Issues Persist

Polymarket’s ban follows similar actions in other regions where predictions deemed gambling require licenses. Previous fines, like the $1.4M CFTC penalty, highlight ongoing compliance challenges.

Based on historical trends, platforms can expect liquidity drops and shifts in user bases. Continuing regulatory pressure may lead to increased formalization and licensing among crypto platforms.