Portugal”s gambling regulatory body has mandated that the crypto prediction platform Polymarket halt its operations within a strict timeframe of 48 hours. This order comes amid a surge in betting related to upcoming elections, raising alarms about potential illegal activities and user safety.
The Serviço de Regulação e Inspeção de Jogos (SRIJ) has informed Polymarket that it is operating without the necessary authorization. The platform facilitates political betting, which is explicitly prohibited in Portugal, irrespective of whether traditional currency or cryptocurrency is used.
In a decisive move, the SRIJ stated that if Polymarket does not comply with the shutdown order, internet service providers might be compelled to block access to the platform throughout the nation. This action underscores the regulator”s commitment to enforcing local gambling laws.
Authorities have recently taken notice of Polymarket”s activities, labeling them illegal and highlighting that only licensed operators are permitted to conduct such services. Local users face the risk of losing their funds should the platform be blocked, as they would not have recourse to recover their assets.
Regulatory intervention was prompted by reports that betting on the January 18 election had surpassed €103 million (approximately $120 million). Users on Polymarket were heavily wagering on the Socialist candidate António José Seguro, especially as the election approaches a February 8 runoff against far-right candidate André Ventura. Authorities emphasized that such betting activities exceeded legal limits, which exist to safeguard election integrity and to prevent undue influence on voters.
As a decentralized prediction market, Polymarket allows users to place bets on real-world events using cryptocurrency. While it maintains that it mirrors public sentiment, global regulators increasingly categorize it as unlicensed gambling. The situation in Portugal reflects a broader trend, as Polymarket is already restricted or blocked in over 30 countries, including the United States, where regulatory concerns have also been raised.
Despite the impending shutdown, some users have reportedly turned to VPNs to bypass regional restrictions. Nevertheless, as regulatory enforcement intensifies, the long-term viability of such workarounds remains uncertain.
