Polymarket Banned in Singapore, Labeled an Illegal Gambling Site
Polymarket, a popular crypto-based prediction platform, has been officially banned in Singapore, with authorities declaring it an illegal gambling site under the Gambling Control Act. The ruling, announced on January 12, 2025, cuts off Singaporeans’ access to the platform and raises global scrutiny over Polymarket’s operations.
Singapore’s Crackdown on Polymarket
Polymarket, launched in 2020, operates on the Polygon blockchain and allows users to wager USD Coin (USDC) on real-world events, from elections to sports outcomes. Despite its decentralized and fast-paced appeal, Singaporean authorities argue that Polymarket is in violation of the Gambling Control Act of 2022, which mandates that all gambling platforms serving Singaporean residents obtain proper licensing.
Key Details of the Ban:
- Penalties for Violation: Under Section 20 of the Gambling Control Act, offenders face fines of up to $10,000 and potential imprisonment of six months.
- Enforcement Oversight: Initially monitored by the Gambling Regulatory Authority (GRA), enforcement duties have now shifted to the Singapore Police Force.
This decisive action aligns with Singapore’s zero-tolerance approach to unlicensed gambling, positioning Polymarket as a cautionary tale for operators in the cryptocurrency sector.
Global Spotlight: Regulatory Challenges for Polymarket
Singapore’s decision is just the latest in a string of regulatory battles for Polymarket, which has faced scrutiny across multiple jurisdictions.
United States: Settling With the CFTC
In 2022, Polymarket agreed to pay a $1.4 million fine to the Commodity Futures Trading Commission (CFTC) after being accused of running an unregistered derivatives trading platform. As part of the settlement, Polymarket was required to block U.S. users from its platform.
However, allegations persist that Polymarket may have failed to comply fully. The FBI and Department of Justice are investigating whether trades involving U.S. users continued post-settlement. Polymarket’s CEO Shayne Coplan has reportedly had his devices searched as part of the probe.
France: Another Regulatory Block
France’s National Gaming Authority (ANJ) also moved against Polymarket in November 2024, blocking the platform after a French user placed a large bet on the U.S. presidential election. French gambling laws permit only specific forms of betting and poker through licensed operators, leaving Polymarket on the wrong side of the law.
Despite Legal Troubles, Polymarket Thrives
Despite mounting regulatory challenges, Polymarket continues to see significant trading volume, underscoring its enduring popularity among crypto enthusiasts.
- January 2025 Trading Volume: $431 million
- Biggest Market: The 2025 Super Bowl Championship, which alone attracted over $15 million in bets.
While this highlights the platform’s global appeal, it also emphasizes the complexities of operating in the unregulated intersections of blockchain technology and gambling.
What’s Next for Polymarket?
The ban in Singapore and ongoing investigations in the U.S. and France paint a challenging picture for Polymarket’s future. Its ability to adapt to global regulatory frameworks will determine whether it remains a major player in the prediction market or faces further bans and legal action.
For now, Polymarket serves as a stark reminder of the regulatory risks in the burgeoning world of crypto-based gambling platforms. The message from regulators is clear: compliance isn’t optional.
