Singapore Bans Polymarket, Describing It as an Unregulated Gambling Site

This follows the country's enhanced measures to enforce the ban on online gambling, especially illegitimate ones.

Singapore has banned a prediction market on the blockchain, describing it as an unregulated gambling site. This follows the country’s enhanced measures to enforce the ban on online gambling, especially illegitimate ones.

On January 12, users in Singapore trying to visit Polymarket received a warning from the authorities based on the Gambling Control Act 2022. The Gambling Regulatory Authority (GRA) declared Polymarket an unlicensed gambling service that is prohibited from operating within the country’s territory.

The messages displayed to visitors included penalties for interacting with unregulated gambling websites. The GRA states that violators will be subject to fines of up to 10,000, imprisonment for up to six months, or both. Singapore Pools continues to be the only legal entity permitted to offer remote gambling services in the country.

The vice president of investment and custody at Cobo Global, Alex Zuo, posted on social media, “If you want to place a bet, you can only go to a state-owned gambling company. Otherwise, you will face fines and imprisonment.”

The Gambling Regulatory Authority (GRA) was established in 2022 to enhance coordination on regulating gambling products and services as they changed over time. This decision can be attributed to the authority’s efforts to contain some online gambling activities while at the same time observing legal provisions in its territory.

Polymarket is based on the Polygon network and has users place bets on real events using USD Coin (USDC). However, it has been operating under the radar, and the platform has come under increasing global regulatory pressure.

The US CFTC fined Polymarket $1.4 million in 2022 for operating an unregulated derivatives trading platform, causing it to cease US user service. As part of the settlement, Polymarket shut down for U.S. citizens. However, current media suggests that the U.S. Department of Justice is looking into claims that Polymarket should not have allowed U.S. users on its platform.

Similarly, the French authorities investigated the platform for possible violations of gambling rules as people placed substantial bets on the 2024 US presidential election. The current laws of France allow only some forms of online gambling, including sports betting and poker.

Singapore’s recent decision to block Polymarket comes after a crackdown on unauthorized gambling sites. Since 2015, the authorities have shut down 3,800 gambling websites and frozen 145,000 transactions worth SG$37 million. From 1 January 2016, law enforcement against illegal gambling became the responsibility of the Singapore Police Force.

This approach comes as Singapore extends its efforts to be a leader in using blockchain and cryptocurrency. Nevertheless, the Monetary Authority of Singapore allows the development of the digital asset sector, increasing the number of crypto licenses in 2024 by twofold compared to the previous year.