Romania Warns of Dangerous Precedent as It Bans Crypto Betting Platform Polymarket

Romania's National Office for Gambling (ONJN) has blacklisted Polymarket, a leading blockchain-based prediction market, citing violations of gambling laws and unlicensed operations. The regulator classified the platform's activities as "counterpart betting," where users wager against each other on future events, a model that falls squarely under Romania's gambling regulations regardless of its use of cryptocurrency, according to Markets. The decision follows a surge in trading volume during the country's presidential and local elections, with Polymarket's transactions exceeding $600 million in presidential election wagers and $15 million in Bucharest's local elections, DL News reports.

ONJN President Vlad-Cristian Soare emphasized that the move is "not about technology, but about the law," stating that betting—whether in fiat or crypto—requires licensing under Romania's state-controlled gambling monopoly. The regulator highlighted multiple violations, including the absence of fiscal reporting, anti-money laundering (AML) safeguards, and player protection mechanisms, according to Cointelegraph. Internet providers are now mandated to block access to Polymarket for Romanian users.

This action aligns with a global trend of regulatory scrutiny against unregistered prediction markets. The U.S. Commodity Futures Trading Commission (CFTC) fined Polymarket $1.4 million in 2022 for operating unregistered derivatives markets, leading to a temporary U.S. exit, DL News reported. Belgium, France, Poland, Singapore, and Thailand have also imposed restrictions on the platform. Despite these challenges, Polymarket recently secured a $2 billion investment from Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, signaling continued confidence in its business model.

Polymarket is preparing a limited U.S. relaunch, focusing on sports-related markets, with plans to resume trading for American users by late November. This follows a CFTC no-action letter granted to a derivatives exchange acquired by Polymarket, which may pave the way for compliance-driven operations in the U.S. The platform's expansion strategy contrasts with its ongoing legal battles in Europe, where regulators argue that reclassifying gambling as "event trading" could create loopholes for unregulated financial activity, according to Guruplay.

Romania's ONJN warned that allowing blockchain-based platforms to circumvent gambling laws would set a "dangerous precedent," enabling operators to rebrand regulated activities as investment services. The regulator reiterated that its blacklist aims to enforce fiscal oversight, consumer protection, and tax compliance, which unlicensed platforms like Polymarket currently evade.