News

Fintech platforms that circumvent traditional regulation are increasingly looking for government accountability. A recent example is the situation with Polymarket in Portugal. The local gambling regulator, SRIJ, ordered this blockchain platform to immediately stop working with residents of the country.

They have allocated only 48 hours from the moment of notification for everything about everything. The reason is simple: they do not have a license to organize gambling and betting in Portugal.

The regulator's interest was aroused by the activity surrounding the recent presidential elections. During the campaign and on election day, Polymarket saw a rapid increase in the number of users and bids. The total volume of bets on various outcomes exceeded 103 million euros.

Journalists noticed a suspicious movement of money shortly before the results were announced. It was reported that more than four million euros were withdrawn. This was seen as possible insider trading, as Polymarket's odds gave candidate Seguro only a 60% chance of winning, while his competitor Ventura's odds were about 30%.

SRIJ's actions are based on Portuguese law. It clearly states what you can bet on.: sports, casinos, horse racing. Betting on politics, including elections, is prohibited. So Polymarket, with their bets on politics, directly violated the law.

Now the Portuguese can still access the platform, but the regulator has already started the blocking procedure. In two days, SRIJ will send a request to the providers to block Polymarket. It is not yet clear what will happen to the money in users' accounts after the blocking. This creates uncertainty for the platform's customers.

As a result, it turns out that the platform operated without a license, violated the ban on political betting and possibly used insider information. The decision of the Portuguese regulator shows that technology does not exempt from compliance with the law, especially in sensitive areas such as gambling and politics. Regulators around the world are increasingly pushing such uncontrolled platforms out of their markets, protecting legal norms and the interests of citizens.