Romania Blacklists Polymarket Amid Gambling Concerns

According to Cointelegraph, Romania's National Office for Gambling (ONJN) has blacklisted the prediction market platform Polymarket, labeling it as an unlicensed gambling entity. This decision comes in response to a significant increase in crypto-based betting during Romania's presidential and local elections, where Polymarket's trading volume reportedly surpassed $600 million. The ONJN emphasized that the platform's operations constitute 'counterpart betting,' where users wager against each other on future events, thus falling under gambling regulations despite its blockchain-based nature. ONJN President Vlad-Cristian Soare clarified that the issue at hand is legal compliance rather than technological innovation. He stated that regardless of whether bets are placed in local currency or cryptocurrency, they are considered gambling and require proper licensing. The Romanian authorities highlighted several regulatory breaches by Polymarket, including inadequate fiscal reporting, lack of player protection mechanisms, and insufficient Anti-Money Laundering (AML) oversight. Consequently, Romanian internet providers are now mandated to block access to the platform. This action aligns with similar regulatory measures taken in other countries. In 2022, the U.S. Commodity Futures Trading Commission (CFTC) fined Polymarket for operating unregistered derivatives markets, leading to a restriction on American users. Additionally, regulators in Belgium, France, Poland, Singapore, and Thailand have imposed access limitations. Despite these regulatory hurdles, Polymarket has continued to expand, recently securing a $2 billion investment from Intercontinental Exchange, the parent company of the New York Stock Exchange. Polymarket is reportedly planning a return to the U.S. market, with a focus on sports-related markets. According to Bloomberg, the platform aims to resume limited trading for U.S. users by the end of November. This development follows a recent no-action letter from the CFTC to a crypto derivatives exchange acquired by Polymarket, effectively paving the way for its relaunch.