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Polymarket, a cryptocurrency-based prediction market that allows users to bet on world events using USDC on the Polygon blockchain, has been blocked in Singapore as part of an intensified crackdown on unlicensed gambling platforms.
When users attempt to access the site from Singapore, they are greeted with a stark warning citing Section 20 of the Gambling Control Act 2022, which imposes steep penalties for gambling with unlicensed operators.
This development coincides with a shift in enforcement authority from the Gambling Regulatory Authority (GRA) to the Singapore Police Force, effective January 1, 2025. The GRA announced the change via a Facebook post, highlighting its commitment to reducing harm caused by illegal gambling. Since 2015, over 3,800 websites and 145,000 transactions totaling SG$37 million ($27.09 million) have been blocked, the agency said.
Polymarket, founded in 2020, gained attention for its innovative approach to forecasting. By enabling users to trade shares representing the probability of future events, the platform became a popular tool for speculating on economic data, elections, and more. However, its operations have been dogged by regulatory challenges.
In 2022, Polymarket settled with the U.S. Commodity Futures Trading Commission (CFTC) after being accused of operating an unregistered derivatives-trading platform. The settlement included a $1.4 million fine and a cease-and-desist order, prompting the platform to block U.S. customers.
The platform was thrust into the spotlight of mainstream political discourse in the run-up to the recent U.S. presidential election, as it was used widely for political forecasting and market analysis. Polymarket users wagered some $3.2 billion on the result of the election. Bloomberg Terminal also integrated Polymarket data on its platform.
The ban in Singapore raises broader questions about the regulation of prediction markets. While Polymarket describes itself as a forecasting tool, authorities appear to view it through the lens of gambling. This distinction is crucial, especially as Singapore strengthens its anti-money laundering (AML) and counter-terrorism financing (CTF) frameworks in response to a multi-billion-dollar money-laundering scandal tied to gaming operations in Southeast Asia.
Singapore Pools remains the only licensed online gambling operator in the country. However, it remains unclear whether the Singapore Police Force or GRA differentiates between prediction markets and gambling sites, or what prompted Polymarket’s sudden inclusion in the list of blocked platforms.
As governments worldwide grapple with how to regulate blockchain-based platforms, Polymarket’s case serves as a litmus test for the broader question: Where is the line between prediction markets and gambling drawn?
Blockhead has reached out to both the Singapore Police Force and the GRA for clarification. As of publication, no response has been received.
