Singapore Bans Polymarket, Citing Illegal Gambling Violations
Singapore has officially banned Polymarket, designating the decentralized prediction market as an illegal gambling platform. This ban aligns with the strict regulations under the Gambling Control Act 2022, which prohibits unauthorized online betting.
Key Developments:
- Polymarket’s website in Singapore now displays a warning from the Gambling Regulatory Authority (GRA), cautioning users of penalties up to $10,000, six months of imprisonment, or both for participating in unlicensed gambling activities.
- The platform allows users to bet on real-world events using cryptocurrency, but Singapore requires all online gambling services to be licensed. Only state-authorized operators like Singapore Pools are permitted to offer such services.
The ban is part of a broader effort to curb illegal gambling, with Singapore blocking over 3,800 platforms and freezing $37 million in transactions since early 2024.
Polymarket’s Global Regulatory Struggles
Polymarket’s challenges extend beyond Singapore:
- France: In November 2023, the platform was banned after a trader wagered $45 million on Donald Trump’s presidential bid. French regulators classified it as illegal gambling.
- United States: The Commodity Futures Trading Commission (CFTC) fined Polymarket $1.4 million in 2022, requiring it to block U.S. users. The CFTC recently subpoenaed Coinbase for data on Polymarket-related transactions.
Despite its decentralized structure on the Polygon network, which complicates regulatory oversight, authorities worldwide continue to scrutinize the platform.
User Concerns and Reactions
Singaporean users reported blocked access starting January 12, although some have attempted to bypass restrictions using VPNs. However, the GRA has issued warnings against such actions. The absence of official statements from either the GRA or Polymarket has led to further confusion.
Platform Popularity Despite Bans
Polymarket’s terms of service already prohibit users from countries such as Bolivia, Iran, and Venezuela. Yet, despite ongoing regulatory hurdles, the platform remains highly popular, boasting 349,500 monthly active users in December 2024, up from 293,700 in the previous month.
The ban in Singapore highlights the global regulatory challenges decentralized platforms face, raising questions about the future of prediction markets in an increasingly regulated digital economy.
