Czech Republic Bans Polymarket: Regulatory Crackdown on Crypto Prediction Markets Intensifies

The Czech Finance Ministry added Polymarket to its blacklist of unauthorized online gambling websites, mandating that internet service providers block access within 15 days. The ministry listed the prediction market's website under the country's Gambling Act, which prohibits unlicensed online gambling services. Polymarket is a platform where users trade contracts tied to future events, gaining global attention during the 2024 US presidential election. The platform and rival Kalshi have faced restrictions from regulators across the European Union, including France, Germany, Poland, Romania, and Spain. The European Securities and Markets Authority (ESMA) warned that many prediction market contracts may already fall under existing restrictions on binary options. ESMA clarified that firms cannot evade EU financial rules by marketing binary-style products as 'event contracts.' The regulator noted that companies offering qualifying contracts to retail investors may face national restrictions, while those targeting professional clients may require authorization under MiFID II. Outside the EU, prediction markets have faced regulatory action in Australia, Indonesia, and Singapore. In the US, Kalshi and Polymarket have been targeted by regulators in several states over allegations of illegal gambling, while the Commodity Futures Trading Commission maintains such products fall under its jurisdiction as federally regulated derivatives. This development underscores growing regulatory scrutiny on crypto prediction tools.