Singapore has restricted access to Polymarket, a cryptocurrency-based prediction platform, citing unlicensed gambling concerns.
The move aligns with Singapore’s Gambling Control Act 2022, which spells out significant penalties for those engaging with unlicensed operators.
Singaporean Users Blocked from Polymarket, Risking Legal Implications
Notably, users attempting to access Polymarket from Singapore now encounter a notice referencing the country’s gambling control act. The warning outlines penalties, including fines up to SGD 10,000, imprisonment for six months, or both.
It emphasizes that Singapore Pools is the country’s only authorized remote gambling operator. The notice originates from the Gambling Regulatory Authority (GRA), which oversees the nation’s gambling framework.
Furthermore, individuals found guilty of unlawful gambling operations face harsher penalties, including fines of up to SGD 500,000 and imprisonment for up to seven years. Moreover, repeat offenses could result in fines reaching SGD 700,000 and prison terms extending to ten years.
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— alexzuo🫡 (@alexzuo4) January 12, 2025
Previous Polymarket Regulatory Actions
Polymarket previously faced regulatory scrutiny in 2022 when the Commodity Futures Trading Commission (CFTC) imposed a $1.4 million fine on its parent company, Blockratize.
The CFTC alleged that Polymarket offered off-exchange binary options contracts without proper registration. Polymarket was required to wind down non-compliant markets and adhere to Commodity Exchange Act regulations as part of the settlement.
The CFTC highlighted that Polymarket had operated over 900 event-based binary option markets since June 2020. These markets allowed users to trade contracts on specific outcomes, such as cryptocurrency prices or election results using blockchain-hosted smart contracts.
Debate on Decentralized Prediction Markets
The latest restriction on Polymarket also renews attention on decentralized prediction markets and their classification. In August 2024, Ethereum co-founder Vitalik Buterin addressed criticism surrounding these platforms. He clarified that prediction markets, such as Polymarket, function as tools for collective insight into significant events.
Buterin underscored their role in providing data-driven predictions without editorial bias, contrasting their function with traditional media or social platforms.
According to him, aligning Polymarket with the global gambling category is “a massive misunderstanding” of prediction markets or why people are excited about them.
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