Singapore has taken a firm stance against a cryptocurrency-based prediction market called Polymarket, classifying it as an illegal gambling operation and effectively banning access to the website for its citizens. This move underscores Singapore’s strict regulatory environment regarding online gambling and its commitment to upholding its Gambling Control Act of 2022. The decision has not only restricted access for residents but also highlights the ongoing global scrutiny faced by such platforms operating in the decentralized finance (DeFi) space.
Singapore’s Legal Framework and Polymarket’s Infringement
The fundamental issue lies in Singapore’s Gambling Control Act of 2022. This law requires any operator wishing to provide gambling services to Singaporean residents to secure a proper license from the Gambling Regulatory Authority (GRA). The Act aims to regulate both authorized and, more importantly, unauthorized gambling activities outside of traditional casinos. Polymarket, an online platform allowing users to bet on various events spanning elections to sports, fell squarely under this definition of "gambling" by Singaporean authorities. According to the regulator, only Singapore Pools, a state-owned lottery subsidiary, is licensed to provide online gambling services within the country. This monopoly is a key component of Singapore’s approach to regulating gambling, where the government’s rationale seems to be that tightly controlling who provides gambling services provides oversight and the ability to ensure responsible gambling practices are being followed.
Polymarket’s operating model, which is decentralized and crypto-based, evidently did not comply with Singaporean regulations. This is because being decentralized means that no one single entity controls the flow of trades or user accounts that might need to obtain a license. Operating without the required licensing directly violates the Gambling Control Act, prompting the GRA to take action by imposing the ban. Singapore seems to be trying to restrict the flow of capital to unregulated and unlicensed entities.
The Warning and Consequences of Non-Compliance
When Singaporean users attempted to access Polymarket’s website, they encountered a clear and direct warning from the GRA. The message explicitly identified Polymarket as an “unlicensed gambling operator” and informed users about their violation of the country’s gambling laws. This clear communication emphasizes the seriousness with which Singapore is treating the matter and it serves as a warning to both potential users and international websites that Singaporean laws must be strictly followed.
The consequences for non-compliance, as outlined by the GRA, are far from negligible. Under Section 20 of the Gambling Control Act 2022, individuals who are found gambling with unlicensed providers can face substantial penalties. These could include a fine of up to $10,000, a jail term of up to 6 months, or even both. This highlights a dual approach Singapore is taking, seeking to both block the operations of offshore and unlawful gambling websites, and to also punish its citizens who use them. The severity of these penalties shows the government’s dedication to enforcing its gambling laws and curtailing illegal operations. The government seems to suggest that this strategy of penalizing users would help disincentivize unlawful online gambling activities.
For example, imagine a high-stakes gambler in Singapore who frequents Polymarket, attempting to predict the outcome of a Presidential election. If caught using Polymarket, this individual could potentially not only lose their wagers but could also face financial penalties up to $10,000 and up to 6 months of jail. This highlights how the law affects ordinary citizens who attempt to use the service.
Polymarket’s Functional Description and Implications for Regulators
Polymarket can be described as an online platform where users participate in prediction markets. These prediction markets are essentially betting systems where users can speculate on the likelihood of future real-world events, such as election outcomes, sporting results, or even scientific breakthroughs. Unlike traditional betting platforms, Polymarket leverages blockchain technology and cryptocurrency, bringing elements of DeFi to prediction markets. Users can purchase tokens to represent the likelihood of a certain event happening, and if that event comes true the value of the token appreciates.
Such platforms present a significant challenge to regulatory authorities. The decentralized nature of these platforms, operated on blockchains with no central authority, complicates the process of identifying and overseeing their operation. This is unlike traditional gambling websites, which have an owner, employees, and have a physical presence that makes it possible for regulators to oversee its operations. Moreover, because cryptocurrency payments are often pseudonymous and decentralized, they make the tracking of transactions difficult, thus making detection and enforcement a very challenging task for gambling authorities like the GRA. This is why Singapore seems to be taking a drastic policy measure to protect its citizenry.
The case of Polymarket is not just an isolated incident; it reflects a broader trend where regulators globally are grappling with how to best control and monitor the use of DeFi and cryptocurrency by citizens. In the realm of prediction markets, the line between market making and regulated securities trading can become blurry, and regulators need to figure out if these types of markets fall under the umbrella of securities trading, of gambling, or if they should be in a third special category all of their own. This area of regulatory compliance is one where the legal systems are rapidly having to come to terms with a new form of technology.
Global Resistance and Regulatory Challenges
Singapore’s decision to block Polymarket is not unique. Other countries and regulatory bodies are increasingly expressing reservations about the operations of this and similar DeFi platforms. For example, France’s National Gaming Authority also banned access to Polymarket, citing its non-compliance with the country’s strict gambling laws. The regulatory authority in France decided that Polymarket did not fit into any pre-approved category of legal gaming and had to be blocked. These actions reflect a growing consensus among regulators about how prediction markets are gambling operations and should be treated.
In the United States, the Commodity Futures Trading Commission (CFTC) has also taken action against Polymarket. The CFTC flagged the platform for operating as an "unregistered derivatives trading platform”, citing that it was trading securities outside of regulatory compliance. These moves highlight the varied concerns, not just on the gambling front but on financial trading fronts, held by regulators across different jurisdiction, regarding the decentralized business model of platforms such as Polymarket. This is a complicated type of legal matter where there can be competing opinions among regulatory authorities across countries.
The challenge for regulators is to balance promoting technological innovation and protecting their citizens from potential financial risks associated with unregulated gambling and/or financial markets. There is a question about whether regulators have to impose these restrictions because they do not understand or have full visibility into the operations of these platforms or for more fundamental reasons. Some might argue that the regulations are needed to protect citizens from unfair practices, while others might argue that it stifles innovation. It remains unclear how these conflicting views on regulations will play out in the future.
Summary
Singapore’s ban on Polymarket is a strong signal of its commitment to enforce its gambling laws within its jurisdiction and its reluctance to engage with unregulated decentralized betting platforms. The move highlights the challenges faced by crypto-based services that operate across international lines, particularly in a space that blurs the lines between traditional financial instruments and wagering. The penalties for citizens who violate these laws are serious. Policymakers globally are wrestling with how to regulate similar prediction markets that take advantage of the benefits of blockchain and cryptocurrency. Meanwhile, operators within this industry need to understand which jurisdictional standards they need to abide by before going live with their websites and services.
Frequently Asked Questions
Q: What is Polymarket?
A: Polymarket is an online prediction market platform that allows users to bet on the outcome of various real-world events, such as elections and sports games. It is based on blockchain technology and cryptocurrency.
Q: Why did Singapore ban Polymarket?
A: Singapore’s Gambling Regulatory Authority (GRA) classified Polymarket as an "unlicensed online gambling operator" violating the Gambling Control Act of 2022. Only state-licensed providers are permitted to offer gambling services in Singapore.
Q: What are the penalties for accessing Polymarket in Singapore?
A: Under the Gambling Control Act 2022, individuals accessing unlicensed gambling platforms are liable for a fine of up to $10,000, a jail term of up to 6 months, or both.
Q: Is Polymarket banned in other countries?
A: Yes, Polymarket has been banned in France and faced regulatory action in the United States. These actions reflect a wider global trend of regulators examining and placing restrictions on such decentralized platforms.
Q: How does Polymarket’s use of cryptocurrency affect its regulatory landscape?
A: The use of cryptocurrency and blockchain technology makes tracking transactions and identifying operators more difficult, adding to the challenges faced by regulators trying to monitor the platform. The decentralized nature of such systems makes enforcing and policing them more complex.
References
- The Independent Singapore. (2024, January 14). Singapore bans blockchain-based platform Polymarket.
- ForexLive. (2024, January 13). Singapore bans Polymarket.
- TradingView. (2025). Chart data.
- CoinNess Global. (2025, January 12). Decentralized prediction platform Polymarket has been reportedly blocked by Singapore. (Tweet). X (formerly Twitter).