(MENAFN- Crypto Breaking) Romania's financial regulators have taken a firm stance against Polymarket, a leading prediction market platform, by officially banning its operations within the country. The move underscores increasing global scrutiny over online crypto-based betting and prediction platforms, especially during high-stakes political events.

• Romania's National Office for Gambling (ONJN) labels Polymarket as an unlicensed gambling site.
• The regulator highlights Polymarket's surge in trading volume during recent elections, exceeding $600 million.
• Authorities emphasize the platform's“counterpart betting” model as falling under gambling laws, regardless of blockchain use.
• Several countries, including Belgium and France, have already restricted access to Polymarket.
• Polymarket plans to relaunch trading in the U.S., focusing initially on sports markets post favorable regulatory developments.

Romania's National Office for Gambling (ONJN) has officially blacklisted Polymarket, a prominent prediction market that allows users to bet on future events, citing its operation as an unlicensed gambling platform. The decision comes amid heightened concerns over crypto-based betting during recent election cycles, where Polymarket reportedly saw trading volumes surpassing $600 million.

ONJN asserts that Polymarket's“counterpart betting” model-where users wager against each other on future outcomes-falls squarely within the scope of Romanian gambling regulations. The regulator clarified that regardless of whether bets are placed using fiat currency or cryptocurrencies, they are legal gambling activities that require appropriate licensing. ONJN President Vlad-Cristian Soare emphasized that the issue is about compliance with the law, not technology, stating,“It's about the law, not the platform's blockchain foundation.”

Although Polymarket promotes itself as an“event trading” platform, ONJN concluded that its operational structure-where users place bets on the outcomes of unpredictable events and the platform earns commissions-meets the legal criteria of gambling. Consequently, Romanian internet providers are now mandated to block access to the platform.

Polymarket users bet on NYC Mayoral Election. Source: Polymarket

This regulatory crackdown echoes similar actions taken elsewhere. In 2022, Polymarket was fined by the U.S. Commodity Futures Trading Commission (CFTC) for operating unregistered derivatives markets, which led to restrictions on US users. Other jurisdictions, including Belgium, France, Poland, Singapore, and Thailand, have also imposed bans or restrictions on access to the platform.

Despite these global restrictions, Polymarket has managed to attract significant investment, recently securing a $2 billion valuation from Intercontinental Exchange, the parent company of the New York Stock Exchange. The platform is now preparing to resume trading in the United States, focusing initially on sports-related markets, with a tentative launch planned before the end of November.

The relaunch comes on the heels of a recent no-action letter from the CFTC for another crypto derivatives exchange affiliated with Polymarket, effectively clearing regulatory hurdles for its U.S. operations. As crypto regulation continues to tighten worldwide, platforms like Polymarket are navigating the complex landscape of compliance and market expansion.

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