Polymarket is preparing a legal challenge against French regulators after the Autorité Nationale des Jeux (ANJ) ordered internet service providers to block the prediction market platform's website.
The ANJ directed French ISPs to restrict access to Polymarket last week ahead of the World Cup final, according to The Block. The regulatory action represents an escalation in enforcement against the cryptocurrency-based prediction market.
France's regulator determined that the platform promoted illegal gambling and cited concerns regarding loss risks, identity-check procedures, and market-manipulation risks as justification for the blocking order, CoinDesk reported.
Polymarket indicated it was surprised by the decision to block the site, characterizing the platform as an information source, and confirmed plans to mount a legal challenge to the regulator's action, according to The Block.
The nationwide website blocking prevents French users from accessing Polymarket's services, which allow individuals to trade on the outcomes of future events using cryptocurrency. The enforcement action taken immediately before the World Cup final suggests authorities were particularly concerned about wagering activity surrounding the major sporting event.
The legal challenge will test the classification of prediction markets under French law, specifically whether the platform constitutes an illegal gambling operation requiring ANJ licensing or qualifies as an alternative type of information market. Licensed gambling operators in France must adhere to strict regulatory requirements including consumer protection protocols and anti-money laundering standards.
The ANJ's specific references to identity-check and market-manipulation risks highlight regulatory concerns about user verification and the integrity of trading on decentralized platforms. These issues represent ongoing challenges for authorities attempting to apply traditional gambling and financial regulations to blockchain-based prediction markets.
By contesting the blocking order, Polymarket aims to overturn the ANJ's determination and restore access for users in France. The outcome could influence how similar platforms are regulated across European jurisdictions as authorities continue to evaluate the legal status of cryptocurrency-powered prediction markets.