Ukraine's Legal Challenges for Web3 Prediction Markets

Ukraine has recently blocked Polymarket and nearly 200 gambling-related websites. According to Foresight News, Dmitry Nikolaievskyi, Chief Legal Officer of the Digital Economy Development Project Office at Ukraine's Ministry of Digital Transformation, stated in an interview with CoinDesk that under current Ukrainian law, Web3 prediction markets lack a legal framework for operation. While the decision to shut down Polymarket followed existing legal procedures, the fundamental issue is the country's legal system does not recognize prediction markets. Previously, the National Commission for State Regulation of Electronic Communications (NKEK) issued a directive for internet service providers to block access to prediction markets. This order was made following recommendations from Ukraine's national gambling regulator, PlayCity, which highlighted that Polymarket operates without a gambling license and its market includes bets related to the Russia-Ukraine war.