Portugal Orders Immediate Shutdown of Polymarket
Portugal’s gambling regulator, SRIJ, has issued an order for the decentralized crypto prediction platform Polymarket to halt operations in the country within 48 hours. The move comes amid accusations of unauthorized operations and illegal political betting, a practice strictly prohibited in Portugal.
Why Polymarket is Under Fire
Polymarket allows users to place bets on real-world events using cryptocurrency. However, the platform, which markets itself as a reflection of public sentiment, has been deemed illegal in Portugal due to its lack of a proper operating license. Crucially, its facilitation of political betting raises red flags, as betting on elections is banned in the country to safeguard voter integrity and election fairness.
Portuguese regulators took action after reports revealed that betting on the January election exceeded €103 million ($120 million). Significant wagers targeted predictions around Socialist candidate António José Seguro and a potential runoff against far-right contender Andre Ventura. Such activity, according to authorities, breaks the law and heightens concerns over the potential influence on election outcomes.
Global Compliance Issues for Polymarket
This is not the first challenge Polymarket has faced. The platform is already blocked or restricted in over 30 countries, including the United States, where regulators have raised similar compliance concerns. Despite these hurdles, some users reportedly bypass regional restrictions using VPNs, underscoring the global challenges of enforcing bans on decentralized platforms.
Potential Risks for Portuguese Users
Authorities warn that the lack of regulatory oversight on Polymarket means users may lose access to their funds if the platform is shut down. This highlights the risks of engaging with unlicensed platforms in the ever-evolving crypto and blockchain industries.
Stay Protected with the Right Tools
To safeguard your investments and ensure you operate within legal frameworks, consider trusted platforms and reliable products. For instance, hardware wallets like the Ledger Nano X provide secure storage for your cryptocurrency, giving you peace of mind in an unpredictable market.
Future Outlook
As global regulators tighten their grip on unlicensed crypto operations, platforms like Polymarket face increasing scrutiny. Portuguese authorities emphasize the importance of monitoring this space to protect users and maintain lawfulness in financial markets.
