Polymarket Faces New Roadblock As Dutch Regulator Bans Prediction Activity — Details
According to latest reviews, the Dutch arm of the prediction markets platform Polymarket has been requested to stop its actions within the Netherlands. This order comes as the most recent regulatory blow dealt to the prediction market platform in latest weeks.
Dutch Regulator Threatens Polymarket With $840,000 Fine
In a notice dated Tuesday, February 17, the Netherlands Gambling Authority ordered Polymarket’s Dutch arm, Adventure One, to “stop its actions instantly” or danger incurring as much as $840,000 in fines per week. According to the Dutch regulator, Adventure One provided unlawful bets, together with on the native elections, to residents with out a license.
While prediction markets don’t significantly fall into the normal playing class, the Netherlands Gambling Authority has categorized them as betting. The regulator revealed that it contacted Polymarket about its actions on the Dutch market, however have seen no corrective motion or response from the prediction markets firm.
Netherlands Gambling Authority’s director of licensing and supervision, Ella Seijsener, mentioned within the discover:
Prediction markets are on the rise, together with within the Netherlands. These varieties of corporations provide bets that aren’t permitted in our market underneath any circumstances, not even by license holders. Besides the social dangers of those sorts of predictions (for instance, the potential affect on elections), we conclude that this constitutes unlawful playing. Anyone with out a Ksa license has no enterprise in our market. This additionally applies to those new playing platforms.
This restriction within the Netherlands marks the most recent stumbling block for Polymarket when it comes to regulation over the previous few months. Despite receiving approvals from the United States Commodity Futures Trading Commission (CFTC), particular person state authorities have positioned important scrutiny on the activities of prediction market platforms.
This has led to a problem of jurisdiction, because the CFTC chair criticized the state-level scrutiny which undermines their federal authority over prediction markets.
Dutch Unrealized Gains Tax On Crypto Rolls On
This crackdown on prediction markets comes only a week after the Dutch House of Representatives superior a proposal to introduce a 36% capital good points tax on most liquid investments, together with cryptocurrencies. This controversial invoice, if handed, would see income created from interest-bearing monetary devices, fairness investments, cryptocurrencies, and financial savings accounts be topic to tax, whether or not realized or not.
The proposal of this capital good points tax led to attention-grabbing reactions, with a number of crypto analysts noting that the laws will drive buyers out of the Netherlands. “To be sincere, the truth that there’s the unrealized good points tax for Bitcoin within the Netherlands is the dumbest factor I’ve seen in a very long time. The quantity of individuals keen to flee the nation goes to be bananas,” analyst Michaël van de Poppe said on X.
