France's Gambling Regulator Set to Ban Crypto Betting Platform Polymarket Amidst Legal Concerns

France's gambling regulator is set to ban Polymarket, a crypto-based betting platform. This decision comes after a Frenchman made headlines by placing huge bets on the U.S. presidential election.

According to a report from The Big Whale, a French website focused on the crypto industry, the regulator—known as ANJ—will likely restrict access to the site soon. An unnamed source close to the ANJ described Polymarket as “a betting activity” and added, “this is not legal in France.”

The ANJ told The Big Whale that it is currently reviewing Polymarket’s operations and its compliance with French gambling laws. Neither the ANJ nor Polymarket responded to requests for comments right away.

By the time U.S. voters went to the polls, Polymarket had reached over $3.5 billion in total cumulative volume, according to data from Dune Analytics. Its performance has been quite surprising this election cycle.

Even major financial outlets like Bloomberg featured Polymarket during the presidential race. However, experts were skeptical about its effectiveness as a prediction tool. Yet, Polymarket gained credibility when President Joe Biden announced he wouldn’t seek reelection and Donald Trump won. These outcomes were seen as more likely on the platform well before they actually happened.

Polymarket has also drawn attention from U.S. regulators. In May, the Commodity Futures Trading Commission proposed a rule targeting prediction markets, also known as event contracts. They argued these markets are prone to manipulation and create undesirable incentives. The public comment period ended in August, and as of Wednesday, it’s unclear if the Securities and Exchange Commission will issue such a rule.

The French regulators took notice of Polymarket because of a heavy user named Theo, who placed large bets on a Trump victory. This was reported by The Big Whale. After an interview with Theo was published in The Wall Street Journal, some speculated that his massive bets indicated an attempt to manipulate the market. However, Theo believed Trump was the likely winner. His bet earned him a staggering $49 million payout after Trump was declared the winner early Wednesday, according to platform data.