Romania Cites Blockchain as a Screen for Illegal Bets, Blacklists Polymarket

According to Cointelegraph, Romania has officially blacklisted prediction market platform Polymarket, citing its operation as an unlicensed gambling service amid a surge in crypto-based betting during recent elections. The National Office for Gambling (ONJN) announced the move on Thursday, requiring internet providers to block access to the platform for Romanian users. The decision adds Romania to a growing list of jurisdictions, including the U.S., France, and Singapore, that have restricted Polymarket over concerns about unregulated gambling and money laundering risks.

The crackdown follows a spike in trading activity on Polymarket during Romania's May presidential and local elections, where the platform's volume exceeded $600 million, according to ONJN. Regulators classified the bets as "counterparty betting," a legal definition that treats users wagering against each other on uncertain outcomes as gambling. ONJN President Vlad-Cristian Soare emphasized that the action is "not about technology, but about the law," noting that whether bets are placed in fiat or crypto, they require licensing under Romanian gambling statutes.

The platform's structure—allowing users to bet on real-world events such as political outcomes and sports results—has drawn scrutiny globally. In the U.S., Polymarket was fined $1.4 million in 2022 by the Commodity Futures Trading Commission (CFTC) for operating unregistered derivatives markets, leading to a temporary ban. Despite these challenges, the company recently secured a $2 billion investment from Intercontinental Exchange, parent company of the New York Stock Exchange, and is reportedly preparing a U.S. comeback focused on sports markets, according to LookOnChain.

Romania's gambling industry is a state monopoly, with operators required to obtain licenses from ONJN. The regulator cited several violations in its decision, including the absence of fiscal reporting, player protection mechanisms, and anti-money laundering (AML) controls. ONJN also highlighted the risks of using blockchain technology to obscure illegal betting activities, stating it would not tolerate "the transformation of blockchain into a screen for illegal betting," as reported by DLNews.

The move reflects broader global trends in regulating crypto-based betting platforms. Belgium, France, and Thailand have also imposed restrictions on Polymarket, while the European Union continues to debate frameworks for digital assets. Meanwhile, the company faces legal challenges in the U.S., where prediction market platform Kalshi recently sued New York regulators over perceived overreach.

Sources indicate that Romanian users accounted for a significant portion of Polymarket's election-related trading, with $15 million wagered on Bucharest's local elections alone. ONJN's updated blacklist will be communicated to internet service providers for enforcement, though the long-term impact on the platform's user base remains unclear.