Taiwan Cryptocurrency Warnings

As the Taiwan presidential election on 13 January 2024 approaches, citizens are advised to refrain from using cryptocurrency betting platforms to wager on the election outcome.

An ongoing investigation into such activities has prompted caution, resulting in the questioning of numerous individuals.

Polymarket Bets Under Scrutiny

Reports highlight the involvement of Taiwanese residents in election betting on the decentralised platform Polymarket.

Prosecutors and investigators have summoned several individuals for participating in Polymarket bets.

It's imperative to acknowledge that engaging in election-related gambling activities in Taiwan is explicitly prohibited by law, potentially violating Article 88-1 of the Election and Recall Act.

The legal consequences for such violations are severe, including the possibility of up to six months of imprisonment, detention, or a fine of up to 100,000 New Taiwan dollars (approximately $3,188).

Polymarkets Regulatory Challenges

This stance is reinforced by the recent summoning of individuals involved in Polymarket bets.

Interestingly, Polymarkets faced regulatory challenges in the United States in 2022.

Headquartered in New York, the company encountered legal proceedings initiated by the Commodity Futures Trading Commission (CFTC) in January 2022.

The CFTC alleged that Polymarket had been operating an "illegal unregistered or non-designated facility" since June 2020.

U.S. Regulatory Tussle and Trading Surge

During the 2020 U.S. presidential election, Polymarket experienced a surge in trading activity, achieving a new volume record of over $10 million.

These regulatory challenges highlight the complexities faced by platforms involved in election-related betting.

Given these developments and the legal implications, Taiwanese authorities are sternly warning citizens against using cryptocurrency betting platforms for wagering on the upcoming presidential election.

As the election date approaches, it is crucial for individuals to abide by the country's laws and regulations to avoid potential legal consequences.