U.S. Regulator Fines Event-Betting Platform, Polymarket $1.5m
Online event-betting platform, Polymarket has been handed a $1.5 million fine by U.S. regulators after its trading was found out to be illegal.
According to an official release by the Commodity Futures Trading Commission, Polymarket started running an unregistered platform around June 2020. It offers people bets on politics, economic indicators, and other real-world events.
To place bets on the platform, customers first need to acquire USD Coin, a stable coin backed by Coinbase Global Inc.
The commission also stated that Polymarket received a "light penalty" because the firm cooperated with the investigation.
The CFTC didn't specify the process Polymarket must follow to list contracts that comply with its rules. However, it opined that getting approval for the platform's markets may take a long time.
It expected the firm to settle the allegations and meet all requirements, including non-compliant contracts, and make funds available for refunding players that had wagered on the market at no later than January 24.
All derivatives markets must operate within the bounds of the law regardless of the technology used, and particularly including those in the so-called decentralized finance or 'DeFi' space.