Romania Blacklists Polymarket, Cites Unlicensed Crypto Gambling

Romania’s National Office for Gambling (ONJN) has taken decisive action, blacklisting the prediction market Polymarket. The regulator classifies it as an unlicensed gambling platform operating beyond state oversight. This decision stems from what ONJN describes as a surge in cryptocurrency-fueled betting during Romania’s presidential and local elections. According to a recent statement, Polymarket’s trading volume exceeded $600 million. The ONJN argues that the platform’s activities constitute “counterpart betting,” where users wager against each other on future events. This model falls squarely under gambling regulations, irrespective of its blockchain-based structure. ONJN President Vlad-Cristian Soare emphasized, “This is not about technology, but about the law.” He clarified that whether bets are placed in lei or crypto, they still qualify as gambling and require licensing.

Multiple Violations Cited

Romanian authorities cited several violations, including a lack of fiscal reporting, player protection mechanisms, and Anti-Money Laundering (AML) compliance. While Polymarket markets itself as an “event trading” platform, the ONJN contends that its structure, involving users betting on uncertain outcomes and the platform taking a commission, aligns with all legal definitions of gambling. Romanian internet providers will now be mandated to block access to the site.

Mirrored Actions Elsewhere

This action echoes similar measures enacted elsewhere. The US Commodity Futures Trading Commission (CFTC) fined Polymarket in 2022 for operating unregistered derivatives markets, forcing it to restrict access for American users. Regulators in Belgium, France, Poland, Singapore, and Thailand have also imposed restrictions. Despite these challenges, Polymarket has continued to expand, recently securing a $2 billion investment from Intercontinental Exchange, the parent company of the New York Stock Exchange.

Potential US Return

Polymarket is reportedly preparing to resume trading in the US within weeks, initially concentrating on sports-related markets. Bloomberg reports the platform aims to relaunch limited trading for US users before the end of November. This follows a recent no-action letter from the CFTC to a crypto derivatives exchange acquired by Polymarket, effectively paving the way for its US comeback.