Regulator in Australia issues ban on Polymarket
After facing regulatory issues in the United States, cryptocurrency prediction market platform Polymarket is making a comeback, having acquired QCEX, a CFTC-licensed entity, for $112 million. The acquisition, approved by the Commodity Futures Trading Commission (CFTC) on July 9, 2025, will enable Polymarket to operate legally in the US market from August 2025.
The journey for Polymarket, however, has not been smooth. In 2022, the CFTC fined the platform $1.4 million for operating without proper licensing. The FBI also raided the home of the company's CEO, Shayne Coplan, following the 2024 US presidential election, over allegations related to allowing US users in political event markets.
Despite these challenges, Polymarket has managed to navigate the regulatory landscape and is now poised to offer event contracts, including sports betting-like contracts, within the CFTC’s rules, similar to competitors like Kalshi. QCEX, with its designation as a contract market and derivatives clearing organization, provides Polymarket a regulated framework aligned with US commodities and futures laws.
Meanwhile, Polymarket's operation in other jurisdictions, such as Australia, France, Belgium, and Switzerland, remains unclear. No specific recent regulatory actions or investigations involving Polymarket in these countries have been reported in the available sources.
The regulator's action is part of their efforts to protect Australians against illegal online gambling. Since 2017, around 220 illegal services have withdrawn from the Australian market following the Australian Communications and Media Authority's (ACMA) enforcement of new illegal online gambling rules. In May, the ACMA launched an investigation into Polymarket's operation and advertising in Australia, which led to the platform's ban today, August 13. Other sites blocked in the same action include Slot Mafia, Top Aussie Pokies, and Spinanga.
Crikey's investigation found that Polymarket, an unlicensed site, was paying TikTok influencers to promote illegal election gambling. This ban on Polymarket follows an investigation by the Australian online news outlet Crikey.
Since November 2019, the ACMA has blocked 1,296 illegal gambling and affiliate websites, reflecting their commitment to protecting Australians against illegal online gambling.
As Polymarket re-enters the US market, it is interesting to note that despite the geo-blocking tech, it was still possible to circumvent the site and access it from the US using a VPN. This underscores the need for global regulatory bodies to work together to ensure the integrity and legality of such platforms.
In summary, Polymarket is now operating legally in the US market, while its status in other jurisdictions, such as Australia, France, Belgium, and Switzerland, remains unclear. The ban on Polymarket in Australia is part of the ACMA's efforts to protect Australians against illegal online gambling, and the ACMA's ongoing efforts to combat illegal online gambling activities are commendable.
- With QCEX, Polymarket's acquisition offers them a regulated framework within the US commodities and futures laws, enabling them to operate legally and offer event contracts in the US market.
- Despite being fined by the CFTC and investigated by the FBI, Polymarket is poised to offer gambling-like contracts within the CFTC’s rules, similar to affiliate competitors like Kalshi.
- Polymarket's venture in other jurisdictions, like Australia, France, Belgium, and Switzerland, is yet to be clarified, as no recent regulatory actions or investigations have been reported.
- The Australian Communications and Media Authority (ACMA) launched an investigation into Polymarket's operation and advertising in Australia, leading to the platform's ban due to its involvement in illegal online gambling.
- The growth and regulation of crypto-based casino-and-gambling platforms like Polymarket requires the collaboration of global regulatory bodies to ensure the integrity and legality of such platforms in the technology-driven finance business and gambling industry.
