Singapore has blocked crypto-based prediction market Polymarket as part of its ongoing crackdown on unlicensed gambling platforms. On Jan. 12, users reported being unable to access the site.
Alex Zuo, vice president of investment and custody at Cobo Global, shared on X that authorities officially classified Polymarket as a gambling site. Anyone placing bets must do so through a state-authorized operator to avoid fines or imprisonment, he added.
He posted a screenshot showing that Singapore’s Gambling Regulatory Authority warns users that Singapore Pools is the sole licensed gambling operator in the country.
Anyone caught gambling with unlicensed providers risks a fine of up to $10,000, up to 6 months in jail, or both.
Polymarket Hits $294M In Daily Trades During 2024 US Elections Amid High Betting Interest
Polymarket functions as a decentralized prediction market where users bet on real-world event outcomes using cryptocurrency.
Users place bets on a variety of events. These include political elections, economic data, entertainment awards and sports results. Each event is framed as a question with clear resolution criteria. For example, “Will Donald Trump win the 2024 US Presidential Election?”
Polymarket saw a surge in activity during the 2024 US elections, reflecting strong user engagement and high financial stakes. On Nov. 5, election day, the platform hit a daily trading volume of $294m, likely driven by increased interest and last-minute bets as the results unfolded.
The platform uses USD Coin (USDC) for transactions and runs on the Polygon blockchain to take advantage of its scalability and lower transaction fees. By allowing users to connect their crypto wallets directly, it eliminates the need for traditional KYC procedures, making it more appealing to those who value privacy.
Regulatory Pressure Mounts On Polymarket
In several regions, including the US, authorities may classify Polymarket’s markets as unregistered derivatives trading, subject to strict regulations. The Commodity Futures Trading Commission (CFTC) previously warned Polymarket for operating without proper registration.
Last year, France’s National Gambling Authority began investigating Polymarket to assess its compliance with local gambling laws. The investigation ultimately led to a ban on Polymarket’s activities in France. The crackdown gained momentum after reports surfaced about a French trader who placed large bets on the US presidential election, reportedly earning around $48m, drawing attention to the platform.
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