(Bloomberg) -- Cryptocurrency-based predictions markets Polymarket has blocked users in France from placing new bets on the platform amid growing scrutiny from the nation’s gambling regulator.
Users in France can “continue to access Polymarket for critical information about the events that matter most to them,” but the platform has paused new trades for the time being, a spokesperson for Polymarket said in a statement.
“We took this step proactively while we continue to engage with stakeholders in the country about our platform and prediction markets more generally,” the statement reads. Crypto media publication The Block reported on the blockage of French users earlier Friday.
France’s gambling regulator has been investigating the operations of Polymarket after a pseudonymous trader, identified by Polymarket as a French national, made massive bets on Donald Trump winning the US presidential election. An analysis from Chainalysis showed that the trader may have been operating as many as 11 different accounts, with a total expected profit of more than $85 million from election bets.
The regulator, known as ANJ, is looking at whether Polymarket complies with its rules. Online gambling is strictly regulated in France, although betting on sports and in poker is permitted.
While Polymarket is based in New York, its betting platform is not available to US users following a 2022 settlement with the US Commodity Futures Trading Commission in which Polymarket was accused of providing illegal gambling services. Bloomberg reported earlier this year that many US-based users continued to flock to the platform by using virtual private networks.
The US Justice Department is also investigating Polymarket for allegedly accepting trades from US-based users, Bloomberg reported earlier this month. The Federal Bureau of Investigation executed a search warrant on Polymarket Chief Executive Officer Shayne Coplan, seizing electronic devices including his phone.
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