Romania Blocks Polymarket: Law vs. Blockchain in Gambling Debate

Romania's National Office for Gambling (ONJN) has blacklisted Polymarket, a leading blockchain-based prediction market, over allegations of operating as an unlicensed gambling platform amid a surge in election-related wagers exceeding $600 million, according to a TradingView report. The regulator classified the platform's activities as "counterpart betting," a term under Romanian law that requires state licensing, regardless of whether bets are placed in fiat currency or cryptocurrency, a Yahoo Finance article explained. The decision, announced on October 30, mandates internet providers to block access to Polymarket, marking the latest in a global crackdown on the platform, the Cointelegraph coverage added.

ONJN President Vlad-Cristian Soare emphasized that the move was "not about technology, but about the law," stating that betting on uncertain outcomes—whether through traditional or blockchain-based means—constitutes gambling and must comply with regulatory oversight, the Yahoo Finance article noted. The regulator criticized Polymarket for lacking fiscal reporting, anti-money laundering (AML) safeguards, and player protection mechanisms, as earlier reports on the matter highlighted. During Romania's May 2025 presidential and local elections, the platform saw trading volumes surpass $600 million and $15 million, respectively, prompting regulators to act, according to a Coinfomania report.

The ban aligns with similar measures in the U.S., France, Belgium, Poland, Singapore, and Thailand, where authorities have restricted access to Polymarket for violating gambling laws, a Markets.com article observed. In 2022, the U.S. Commodity Futures Trading Commission (CFTC) fined Polymarket $1.4 million for operating an unregistered derivatives market, forcing it to block American users, as previous coverage detailed. Despite these challenges, Polymarket has continued expanding, reportedly securing a $2 billion investment from Intercontinental Exchange (ICE), owner of the New York Stock Exchange, in late 2025, according to Cointelegraph coverage.

Polymarket is now preparing a U.S. relaunch, focusing on sports betting and leveraging a recent CFTC no-action letter obtained through its acquisition of a licensed derivatives exchange, Markets.com reported. The platform aims to resume limited trading for U.S. users by late November, positioning itself as a blockchain-first alternative to traditional prediction markets, earlier reporting noted. However, regulatory uncertainty persists, particularly in Europe, where officials argue that platforms like Polymarket exploit legal gray areas between gambling and financial services, the Coinfomania report added.

The Romanian ban underscores the tension between decentralized finance innovation and existing regulatory frameworks. While Polymarket markets itself as an "event trading" platform, regulators contend that its structure—users wagering on outcomes with commissions—meets all legal definitions of gambling, the Yahoo Finance article observed. ONJN warned that allowing unlicensed platforms to operate under the guise of "event trading" could create a "dangerous precedent," undermining consumer protections and fiscal oversight, Cointelegraph coverage warned.

As Polymarket navigates a fragmented global regulatory landscape, its ability to balance compliance with innovation will determine its future growth. For now, the platform's operations remain suspended in Romania, with similar restrictions in place across much of Europe, Markets.com reported.