France Cracks Down Hard on Polymarket, 30 Countries Follow, Forcing EU to Redefine Prediction Markets

Foresight NewsPublished on 2026-07-21Last updated on 2026-07-21

Abstract

French gambling regulator ANJ has ordered nationwide ISP blocking of Polymarket, a crypto-based prediction market platform, escalating a four-year regulatory battle. ANJ classified it as illegal gambling rather than an unlicensed crypto exchange, focusing on consumer harm instead of financial market risks. This distinction carries significant legal implications and may influence other EU regulators. Despite a 2024 ban on financial transactions, Similarweb data showed over 205,000 unique French visitors in June 2026, prompting the site-blocking order. Investigations cite alleged weather data manipulation affecting contracts and a trader ("Fredi9999") suspected of manipulating odds for the 2024 US election. ANJ justifies the ban by highlighting the platform's lack of mandatory consumer protection features like betting limits and self-exclusion tools. Over 30 countries have restricted Polymarket. As the largest EU economy, France's move sets a potential precedent. Its classification conflicts with the EU's MiCA framework, which treats such markets as crypto assets. If adopted EU-wide, this could lead to blanket bans under gambling laws, diverging from the financial regulatory path taken by compliant platforms like US-based Kalshi. The effectiveness of France's block and the outcome of related legal cases will be closely watched by other EU members.


Source: Blockhead

Compiled by: Saoirse, Foresight News


France's National Gaming Authority (ANJ) has now ordered all domestic internet service providers to block access to Polymarket. This is a prediction trading platform that allows users to use cryptocurrency to bet on the outcomes of real-world events.


This official ban was formally issued by France's National Gaming Authority on July 16th, escalating a four-year regulatory battle with unprecedentedly tough enforcement measures. The core rationale for this control focuses primarily on the harm the platform causes to ordinary users, rather than risks to financial market order.


This classification is crucial: the regulatory body did not categorize Polymarket as an unlicensed cryptocurrency exchange but instead directly identified it as an illegal gambling operation, grouping it in the same regulatory category as unlicensed online casinos and sports betting platforms. The two classifications correspond to vastly different legal constraints and enforcement measures, which will profoundly influence the regulatory approaches of authorities in other European countries.


The Data Behind the Regulatory Escalation


France previously issued regulations in November 2024 prohibiting users within its territory from transacting funds with Polymarket, but this measure proved largely ineffective. The French National Gaming Authority cited data from traffic analysis platform Similarweb showing that in June 2026 alone, the platform had 205,057 unique visitors from France, with total visits reaching 578,751. Users could easily bypass the fund transfer restrictions simply by using a Virtual Private Network (VPN). The Authority concluded that only directly blocking the website's domain name could achieve effective control.


The regulator also listed two lines of investigation into violations: France's meteorological service, Météo-France, filed a complaint alleging that someone tampered with temperature sensor data to manipulate weather-related prediction contracts on Polymarket; the Paris prosecutor's cybercrime unit has opened a formal investigation into this on May 4th. In addition, regulators are closely monitoring a French trader with the account name 'Fredi9999', who allegedly manipulated odds for bets related to the 2024 US presidential election by holding large positions, and is now under investigation by French authorities.


As early as February 2026, France's National Gaming Authority had already reclassified such prediction markets as illegal gambling. The rationale was that these platforms lacked the mandatory risk protection mechanisms required for legal gambling institutions in France: betting limits and user self-exclusion pathways, thus failing to ensure consumer safety.


What This Means for the Entire Industry


France is not alone in restricting Polymarket; currently, over 30 countries and regions worldwide have implemented controls on the platform: Switzerland was the first to block the website in November 2024; Poland, Singapore, and Belgium followed with restrictions in early 2025; Portugal introduced control measures in January 2026; Spain issued a temporary blocking order and launched a simultaneous investigation in May of the same year. Brazil, Argentina, India, Indonesia, as well as Italy, Germany, Romania, Hungary, and Ukraine have all introduced related restrictive policies.


But France is the largest economy in the EU and the first member state to mandate a nationwide uniform website block by all operators. Official documents repeatedly mention the platform's addictive nature and harm to consumers, using phrasing identical to that employed when regulating loot boxes and other grey-area gambling products.


The more profound impact of this event lies in whether this regulatory standard will be implemented across the entire EU. France's classification of prediction markets under gambling, rather than as financial instruments or information services, creates a clear conflict with the EU's current regulatory framework under the Markets in Crypto-Assets Regulation (MiCA). If other EU member states follow France's judgment logic, crypto prediction markets could face a uniform ban across the EU under gambling laws, rather than being regulated compliantly under financial market regulations. This runs counter to the long-term compliant development path laid out by the US-regulated prediction platform Kalshi.


Kalshi is a compliant prediction market regulated by the US Commodity Futures Trading Commission (CFTC), currently expanding its US institutional business and had previously planned to enter the European market. If the EU uniformly classifies such platforms as gambling ventures, its European expansion plans would face significant obstacles — not necessarily that European users would be completely unable to access it, but the platform's regulatory positioning and brand image would become fundamentally misaligned with its US domestic operations.


At this stage, France serves as a test case for EU regulation. If the operator blocking measures significantly reduce domestic traffic, and if the meteorological data tampering case results in a successful prosecution, other EU regulators will closely reference this case when formulating their own control plans.

Related Questions

QWhat is the core reason for France's regulatory crackdown on Polymarket according to the article?

AThe core reason is the platform's harm to ordinary users, not financial market risks. French regulator ANJ has classified it as illegal gambling, focusing on consumer protection risks like addiction, lack of betting limits, and self-exclusion tools, rather than treating it as an unlicensed crypto exchange.

QWhat was the previous French measure against Polymarket in 2024, and why did the authorities escalate to a website ban?

AIn November 2024, France banned financial transactions between domestic users and Polymarket. This measure proved ineffective, as data showed hundreds of thousands of French visits in June 2026, with users easily bypassing restrictions using VPNs. The regulator concluded that only a direct website domain block could achieve effective control.

QWhat are the two specific examples of potential manipulation on Polymarket mentioned by the French regulator?

AFirst, a complaint from the French meteorological service Météo-France about tampered temperature sensor data to manipulate weather-related prediction contracts. Second, the regulator is investigating a French trader using the handle 'Fredi9999' for allegedly using large positions to artificially alter odds on contracts related to the 2024 US election.

QWhat is a potential broader regulatory implication for the EU highlighted in the article?

AThe article highlights that if other EU member states follow France's lead in classifying prediction markets as gambling rather than financial instruments or information services, these platforms could be uniformly banned across the EU under gambling laws. This conflicts with the existing MiCA framework and would diverge from the compliance path of platforms like the US-regulated Kalshi, potentially blocking its European expansion.

QWhy is France considered a test case for EU regulation on prediction markets?

AFrance is considered an EU regulatory test case because it is the largest EU economy and the first member state to order a nationwide ISP-level website block. The outcome—specifically whether the block significantly reduces domestic traffic and if the weather data tampering case leads to a successful prosecution—will be closely watched by other EU regulators as they formulate their own control measures.

Related Reads

Global Stock Market's Storm Center: South Korea's Stock Market De-leveraging Is Largely Complete

Storm's Eye: South Korean Market De-leveraging Nears Completion The recent sharp correction in South Korean equities, with the KOSPI index dropping 32% from its June high, has been a key trigger for global tech stock volatility. The core driver was not a fundamental shift but a forced de-leveraging process within the market's unique structure, which is now largely complete. Two main leverage channels amplified the sell-off: 1. **Leveraged ETFs:** Their size, proportionally four times larger than in the U.S., peaked near $50 billion. Their mandatory daily rebalancing mechanism created a vicious cycle of "price drop → forced selling → further drop." Approximately 75% of this excess has been unwound, shrinking to $26 billion, with regulatory curbs now blocking new inflows. 2. **Hedge Fund Leverage:** Using swaps to magnify exposure, hedge funds saw their net long positioning fall by over 50% from peak levels. The most intense phase of this institutional de-leveraging is over. In contrast, **retail margin debt** poses minimal systemic risk. At 0.5% of market cap, it is far lower than in the U.S. or China, lacks automatic triggers, and is concentrated in smaller stocks. The conclusion: the high-leverage structures most prone to "chain-reaction selling" have been substantially cleared. The market is transitioning from a liquidity-driven crash to one priced more on fundamentals. The article argues that the AI trend—centered on Korean memory chips—remains intact. This episode represents a painful but necessary clearing of crowded trades, not the end of the AI revolution. For investors, the key question is conviction in the long-term AI direction; if the trend is real, current volatility is a cost of entry, not a terminal risk.

链捕手1h ago

Global Stock Market's Storm Center: South Korea's Stock Market De-leveraging Is Largely Complete

链捕手1h ago

Trading

Spot
活动图片