Key Developments
- •Polymarket has been banned by Romania due to illegal gambling practices.
- •This action reflects a growing global trend of increased regulatory scrutiny on crypto gambling platforms.
- •The restrictions could lead to reduced liquidity in crypto gambling markets.
Romania’s National Office for Gambling has banned Polymarket, a crypto gambling platform, citing unlicensed activity and regulatory noncompliance as reasons for the restriction.
The ban on Polymarket underscores regulatory challenges for crypto platforms, impacting market liquidity and necessitating strategic shifts towards compliant regions.
Romania's Regulatory Move on Crypto Gambling
Romania has announced a ban on the crypto prediction platform, Polymarket, marking its operations as illegal gambling. The action is driven by explosive betting activity on the 2025 Romanian elections via the platform.
The National Office for Gambling (ONJN) instructed ISPs to block Polymarket, referencing unlicensed activity and inadequate player protection. The platform had been processing over $600 million in related bets.
"This is not about technology, but about the law. Whether bets are in fiat or crypto, the requirement remains: licensing under Romanian gambling statutes."
Vlad-Cristian Soare, President, ONJN
This decision aligns Romania with other nations, including the US, France, and Singapore, that have imposed similar restrictions. The global regulatory environment increasingly targets unregulated crypto gambling platforms.
Financially, Polymarket's ban in Romania may strain its active user base and impact ETH liquidity within prediction markets. Historical trends indicate prediction markets often face temporary liquidity challenges post-regulation.
The ONJN's move is anticipated to affect market liquidity and betting strategies in the affected jurisdictions. Spending in Bucharest's municipal outcomes alone reached $15 million.
In broader terms, these regulatory actions may force crypto platforms toward formal compliance measures or push them to seek compliant markets. Long-term impacts could drive Polymarket toward licensed operations, as seen in the US.