France\u2019s primary gambling regulator, the Autorit\u00e9 Nationale des Jeux (ANJ), has taken its most aggressive step yet against the popular decentralized prediction market Polymarket. On July 16, the regulator ordered domestic internet service providers (ISPs) to block access to the site, escalating a long-running battle over whether the blockchain-based platform constitutes an illegal gambling operation or a legitimate financial trading venue.<\/p>\n
The ANJ\u2019s decision reflects a growing global friction between local regulatory frameworks and decentralized Web3 applications. While Polymarket operates on the Polygon blockchain, allowing users to buy and sell shares in the outcomes of future events using stablecoins, the French regulator views the platform through a traditional lens. Rather than treating it as a novel financial trading venue, the ANJ has classified it as an illegal gambling site operating without the necessary state licenses.<\/p>\n
This ISP blocking order comes after previous regulatory efforts failed to deter French participants. In November 2024, authorities implemented a ban on financial transactions tied to the platform. However, the decentralized nature of the crypto ecosystem, combined with basic privacy tools, made the ban easy to circumvent. According to Similarweb data cited by the regulator, French users simply used virtual private networks (VPNs) to bypass the restrictions. This workaround led to significant engagement, with Polymarket drawing 578,751 visits from 205,057 unique visitors in France in June alone.<\/p>\n
Even with transactional restrictions in place, the ANJ argued that the platform\u2019s public-facing website acted as an active promotional tool. Although French users faced hurdles when trying to fund their accounts, the homepage remained fully accessible, allowing anyone to view active betting pools. The regulator contended that this public display of real-time odds served to market and promote an unauthorized service to French citizens.<\/p>\n
“The site’s homepage, which dynamically displays real-time odds for various events open to betting, thus serves as a major channel for disseminating and promoting Polymarket’s offerings, even though the site’s operations are not authorized in France,” the regulator wrote. Under French law, operators who violate these gambling regulations can face steep penalties, with fines that can reach 100,000 euros ($114,380).<\/p>\n
Polymarket did not immediately respond to a request for comment from CoinDesk.<\/p>\n
The regulatory crackdown is not solely based on unlicensed betting; it also involves a bizarre real-world incident that highlights the vulnerabilities of decentralized prediction markets. These platforms rely heavily on external data feeds, known as “oracles,” to settle bets on real-world events. In this case, the ANJ cited a formal complaint from M\u00e9t\u00e9o-France, the country’s national weather service. The complaint alleged that a temperature sensor had been tampered with to manipulate the outcome of weather-based bets hosted on Polymarket.<\/p>\n
This alleged manipulation of physical infrastructure to influence a blockchain-based market prompted the Paris prosecutor’s cybercrime unit to open an investigation on May 4. The incident underscores a growing concern among regulators and security experts: as decentralized prediction platforms grow in popularity and liquidity, the incentive to manipulate the physical or digital data sources used to resolve these markets increases exponentially.<\/p>\n
The clash in France is part of a broader, ongoing struggle for Polymarket as it navigates global jurisdictions. The decentralized prediction platform previously faced enforcement action in the United States, where the Commodity Futures Trading Commission (CFTC) fined it $1.4 million in 2022 for offering unregistered event contracts, forcing the platform to block U.S. residents from trading. Despite these geographic blocks, Polymarket has remained a dominant force in the crypto landscape, particularly during major political and cultural events, proving that policing a decentralized protocol remains one of the greatest challenges for modern regulators.<\/p>\n","protected":false},"excerpt":{"rendered":"
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