Polymarket, crypto platform of prediction market, has issued a ban on access to traders in France due to an ongoing investigation. However, someone seems to see the block as “an illusion.”
Summary
Polymarket and the access ban for traders in France
Last Friday, the giant of the crypto prediction market, Polymarket, issued a ban for its traders in France through a pop-up, which reads as follows:
“It seems that you are located in the United States, in France, or another related jurisdiction. Trading is not available for U.S. persons, persons located in the United States, in France, or in restricted jurisdictions.”
In practice, it seems that the French government is investigating the juggernaut of prediction markets for compliance with gambling law. Specifically, it is the French National Gambling Authority, the ANJ, leading the investigations.
Indeed, in the specific case of Polymarket and France, it seems that in the weeks leading up to the US presidential elections, an anonymous French user had attracted international attention.
In fact, the billion-dollar event was the largest in terms of bets on Polymarket, and that French user seems to have placed bets for 28 million dollars on Donald Trump’s victory from four different accounts.
After the revelation, concerns about potential insider trading of Polymarket spread, but also the French regulator raised its head to investigate the platform.
The consequence has been that, at the moment, Polymarket is no longer accessible in France, as well as in the USA.
Polymarket and the ban on accessing the crypto platform in France: an illusion?
Also on Friday, November 22, when the pop-up ban for French traders on Polymarket began to circulate, a journalist from TheBigWhale shared the following:
“Info @TheBigWhale_ As we revealed 2 weeks ago, @Polymarket is no longer accessible in France. It is no longer possible to place bets. An illusion, because I managed to place a bet thanks to a VPN.”
Grégory Raymond stated that the ban for French traders on Polymarket was an illusion, as he himself had managed to place a bet thanks to a VPN.
According to what was stated by a spokesperson for the company Polymarket, it seems that the platform remains active for the French to obtain information, but not to place bets.
“French users can continue to access Polymarket to obtain critical information on the events that matter most to them, but for the moment we have paused new trades. We have taken this measure proactively, while we continue to engage with the country’s stakeholders on our platform and on prediction markets more generally.”
The situation in the USA: the federals raid Shayne Coplan’s house
Also in this month of November, it emerged that Polymarket has come under the scrutiny of the FBI in the USA.
The federals raided the home of the platform’s CEO, Shayne Coplan, and only seized his phone and other electronic devices, without making arrests or charges for wrongdoing.
In practice, it seems that the US Department of Justice is investigating the company for allowing US users to access the site, despite the ban. And indeed, regarding the USA, Polymarket has been in agreement with the Commodity Futures Trading Commission (CFCT) since 2022 to block access to its services for US citizens.
Just like in the case of Raymond in France, it also seems here that the Americans are able to operate on the platform through virtual private networks or VPNs, which can be used to circumvent the ban.
