Polymarket Restricts French Users Following ANJ Probe

The company faces ongoing regulatory scrutiny, which closely follows similar action in the USA that resulted in FBI agents raiding CEO Shayne Coplan’s homeImage Source: Shutterstock.com

Polymarket, a leading crypto-based real-world event prediction platform, has ngaken steps to block French usersin response to an investigation by France’sNational Gaming Authority (ANJ) into its compliance with the country’s gambling laws. The platform, which allows users to bet on political, sports, and other events, has faced ever-increasing scrutiny, including in the USA.

Users Attempting Access Report Mixed Results

The new restrictions emerged after reports that a French trader had won a substantial beton Donald Trump’s 2024 US presidential election victory. This high-profile win was likely the last straw that caused ANJ to launch anin-depth reviewof Polymarket’s operations. The regulator will now determine whether the company’s offerings comply with French gambling laws.

New reports indicate that Polymarket has been more thorough than usual with this ban, as some French players cannot access the platform even via using a VPN. However, others reported successfully evadingthese restrictions. While Polymarket has not officially updated its terms of use to reflect the ban, the platform appears to beattempting to complywith ANJ directives.

Polymarket has repeatedly faced allegations of market manipulation. Recent reports alleged that up to 30%of the platform’s trading activity may be linked to wash trading, where traders repeatedly buy and sell assets to create the illusion of high market activity. These practices can distort public sentiment and entice new participants, raising ethical and regulatoryquestions.

Polymarket Gained Notoriety During the US Elections

During the latest US election cycle, Polymarket reportedly saw $3.2 billionin user bets. High-volume bettors allegedly received hefty payouts, with one individual securing $20.4 million, sparking further questions about the fairness and transparency of the platform. French journalistGrégory Raymondnoted that using Crypto did not mean it could avoid gambling regulations.

Even if Polymarket uses Crypto in its operation, it remains a betting activity and is not legal in France, a source close to the ANJ explained to me.

Grégory Raymond

Polymarket’s CEO, Shayne Coplan, also became a target of an investigation. The FBI reportedly confiscated Coplan’selectronic devicesas part of a broader probe into possible market manipulation. Although no formal chargeshave been filed, the raid has intensified pressure on the platform, raising concerns about its future.

As Polymarket attempts tostabilize its operations, it faces an uphill battle to restore trust in its operations and meet international regulatory requirements whilemitigating the damagecaused by allegations of market manipulation. While the ANJ’s investigation is unlikely to affect the platform’s status in other European nations, it reflects a broader trendof decentralized platforms encountering regulatory friction.