Romania blacklists Polymarket for illegal crypto betting amid $600M election wagers
Summary
Polymarket faces a ban in Romania, joining a wave of regulatory actions across the US, France, Belgium, Poland, Singapore, and Thailand, where authorities have targeted unlicensed gambling activities. This trend highlights increasing global scrutiny on online betting platforms.
Key Insights
What is 'counterparty betting' and why is it considered gambling under Romanian law?
'Counterparty betting' refers to a betting model where users wager money against each other on uncertain future events, such as election outcomes. Romanian regulators classify this activity as gambling because it involves risking money on uncertain results and requires licensing under national gambling laws, regardless of whether bets are placed in fiat currency or cryptocurrency.
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Why has Romania blacklisted Polymarket despite it being a blockchain-based platform?
Romania blacklisted Polymarket because it operates as an unlicensed gambling platform, violating national gambling regulations that require operators to obtain licenses. The Romanian National Office for Gambling emphasized that the issue is legal compliance, not the underlying blockchain technology. Concerns include lack of fiscal reporting, insufficient player protections, and risks of money laundering, leading to mandated internet provider blocks to restrict access.