The CFTC has taken action against 'decentralized' prediction market platform Polymarket — the first crypto-related enforcement action this year. cryptocurrency
CFTC Fines 'Decentralized' Prediction Market Platform Polymarket $1.4 Million, Shuts Down Noncompliant Markets
The order requires that Polymarket pay a $1.4 million civil monetary penalty, facilitate the resolution of all markets displayed on Polymarket.com that do not comply with the Commodity Exchange Act and applicable CFTC regulations. Polymarket describes itself as “a decentralized information markets platform, harnessing the power of free markets to demystify the real-world events that matter most to you.” It advertises that users can “bet” on their beliefs about the outcome of real-world events.
According to the derivatives watchdog, “Polymarket had been operating an illegal unregistered or non-designated facility for event-based binary options online trading contracts, known as ‘event markets'” since approximately the beginning of June 2020.