Polymarket barred in Colombia
The Colombian regulator says prediction markets resemble gambling more than financial trading.
Colombia.- Polymarket has encountered another regulatory hurdle, this time in Colombia, where authorities have barred its operations over concerns that its prediction markets resemble gambling more than financial trading.
Coljuegos, Colombia’s national gaming regulator, issued the ban citing violations of laws that prohibit wagering on political outcomes. The agency claims Polymarket’s political prediction markets breach these rules and alleges that the platform has also been facilitating unauthorised financial activities, including cryptocurrency-based betting while undermining the regulated market’s contributions to state healthcare.
As a result, Coljuegos has instructed Colombian internet providers to block access to the site. Its president, Marco Emilio Hincapié, said the platform lacked the necessary licenses to offer online gaming.
Founded in 2020 as a decentralised platform on the Polygon blockchain and using the USDC stablecoin, Polymarket has long operated in a regulatory grey zone in many jurisdictions. In 2022, the US Commodity Futures Trading Commission (CFTC) reached a settlement with the company, prompting it to block US users.
Polymarket bought QCX LLC, a CFTC-registered derivatives exchange, in July and rebranding it as Polymarket US and restoring its access to the American market. However, it continues to face regulatory issues internationally. Singapore and Belgium have restricted its operations, and the German regulator recently issued a warning. It introduced geoblocking in France following an investigation by L’Autorité Nationale des Jeux (ANJ).
