Polymarket Faces New Roadblock As Dutch Regulator Bans Forecasting Activity — Details
According to recent reports, the Dutch arm of the prediction markets platform Polymarket has been asked to cease its operations in the Netherlands. The order comes as the latest regulatory blow against the prediction market platform in recent weeks.
Dutch Regulator Threatens Polymarket with $840,000 Fine
In a notice on Tuesday, February 17, the Netherlands Gambling Authority ordered Polymarket’s Dutch arm, Adventure One, to “cease its operations immediately” or risk fines of up to $840,000 per week. According to the Dutch regulator, Adventure One offered illegal betting, including on local elections, to unlicensed residents.
Although betting markets do not particularly fit into the general gambling category, the Netherlands Gambling Authority has classified them as betting. The regulator stated that it has contacted Polymarket regarding its activities in the Dutch market, but has not seen any corrective action or response from the prediction market company.
The Netherlands Gambling Authority’s director of licensing and supervision, Ella Seijsener, said in a statement:
Prediction markets are on the rise, including in the Netherlands. These types of companies offer bets that are not allowed in our market under any circumstances, even license holders. Despite the social dangers of these types of predictions (for example, the possible impact on elections), we conclude that this constitutes illegal gambling. Anyone without a Ksa license has no business in our market. This also applies to these new gambling platforms.
This restriction in the Netherlands marks Polymarket’s latest legal setback in the past few months. Despite receiving permits from the United States Commodity Futures Trading Commission (CFTC), the authorities of each country have closely monitored the activities of the platforms of the futures markets.
This has led to an administrative issue, as the CFTC chairman has criticized state-level scrutiny that undermines its federal authority over futures markets.
Dutch Gain Tax Benefit With Crypto Rolls On
This disruption to the prediction markets comes just a week after the Dutch House of Representatives proposed a proposal to introduce a 36% capital gains tax on most liquid investments, including cryptocurrencies. This controversial bill, if passed, would see profits made from interest-bearing financial instruments, equity investments, cryptocurrencies, and savings accounts taxable, whether or not they exist.
The proposal for this capital gains tax led to an interesting response, with several crypto analysts commenting that the law will drive investors away from the Netherlands. “To Be honest, the fact that there is a tax on unrealized gains Bitcoin The Netherlands is the dumbest thing I’ve seen in a long time. The number of people willing to flee the country will be bananas,” said analyst Michaël van de Poppe to X.
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