As countries worldwide grapple with regulating cryptocurrency markets, Singapore’s regulatory authorities have deemed a US-based cryptocurrency betting platform, Polymarket, as an unfettered gambling site and subsequently slapped a prohibition on it. The blow is a result of the stringent gambling laws in Singapore, which Polymarket’s operations contravened. Residents who had been using Polymarket for crypto predictions now find themselves at a dead-end, following the site’s classification as an “unlicensed gambling operator.”
Regulatory Authorities in Singapore Clamp Down on Polymarket
The decision by Singapore’s Gambling Regulatory Authority to impose a ban on Polymarket took effect on January 12. The crypto-based prediction platform, often tapped for projections on diverse subjects from sports results to election outcomes, has now been officially recognized as an unlicensed gambling site in the Asian nation. Alex Zuo, the Vice President of Investment and Custody at crypto custodian Cobo Global, confirmed this in a recent post.
Tightening the Noose on Unlicensed Operations
Singaporean residents attempting to access Polymarket encountered a stern warning from the Gambling Regulatory Authority driven by the state. The authority’s posted notice clearly stated that Polymarket was operating in Singapore without the required gambling operator license.
Polymarket: An Infringement of Singapore’s Strict Gambling Laws
According to the Gambling Regulatory Authority, Polymarket is in clear violation of Singapore’s Gambling Control Act 2022. The act serves as the nation’s primary legislative instrument for outlawing unauthorized gambling and overseeing legitimate operations beyond casino contexts. The law stipulates that all gambling operators intending to provide services to Singapore’s residents must secure the necessary licenses from the country’s regulatory bodies. Currently, Singapore Pools, a state-owned lottery subsidiary, holds the status of the sole licensed online gambling operator in the country.
Implications of Unlawful Gambling in Singapore: Fines and Incarceration
Singapore’s legal authorities have cautioned that any individual found guilty of using unlicensed gambling platforms, like Polymarket, could be sentenced to a fine or imprisonment. As per Section 20 of the Gambling Control Act 2022, penalties can range up to a $10,000 fine, a jail term of up to six months, or both.
The Global Pushback Against Polymarket
Singapore’s resistance to Polymarket is not a unique situation. The crypto-based betting platform has been facing similar setbacks in other countries as well. France’s National Gaming Authority, for instance, restricted access to Polymarket in late 2021, declaring that it did not align with the stringent French gambling laws. Similarly, in the United States, the Commodity Futures Trading Commission obstructed Polymarket, terming it an “unregistered derivatives trading platform.”
FAQs:
What is Polymarket?
Polymarket is a cryptocurrency-based prediction market platform where users can bet on various outcomes ranging from sports to political elections.
Why was Polymarket banned in Singapore?
The Gambling Regulatory Authority of Singapore classified Polymarket as an unlicensed gambling operator, thus contravening the country’s stringent gambling laws and subsequently leading to the ban.
Is Polymarket facing similar restrictions in other countries?
Yes, Polymarket has faced restrictions in France and the United States where it was flagged for not complying with their respective gambling laws.
What are the penalties for gambling with unlicensed gambling service providers in Singapore?
According to the Gambling Control Act 2022 in Singapore, a person convicted of gambling with unlicensed service providers can face a fine of up to $10,000, or a jail term of up to 6 months, or both.
In conclusion, the crackdown on Polymarket highlights the careful scrutiny and regulatory measures being adopted globally for cryptocurrency operations. It’s a clear indication of the need for platforms operating in this sphere to align with jurisdictional laws, to avoid infractions and safeguard their users. Singapore’s stance on Polymarket serves as a timely reminder for crypto-based operators to ensure they remain within the legal framework of their operating territories.
