Regulation

France Orders Polymarket Blocked After French Traffic Influx

📖 6 min de lecture France Orders Blocking of Polymarket After Influx of French Traffic The Autorité Nationale des Jeux (ANJ), the French gambling regulator, has officially ordered internet service providers (ISPs) to block access to Polymarket, the blockchain-based betting platform. This decision follows a significant increase in French traffic to the platform, which attracted...

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France Orders Blocking of Polymarket After Influx of French Traffic

The Autorité Nationale des Jeux (ANJ), the French gambling regulator, has officially ordered internet service providers (ISPs) to block access to Polymarket, the blockchain-based betting platform. This decision follows a significant increase in French traffic to the platform, which attracted the regulator’s attention due to its mechanics deemed addictive and its lack of player protection tools.

Why Is the ANJ Targeting Polymarket?

Polymarket is a decentralized prediction platform that allows users to bet on the outcome of real-world events — political, sporting, and economic results. Although its operation relies on blockchain technology and smart contracts, the French regulator considers that its activity falls under gambling and should be subject to French regulations in this area.

The ANJ justifies its decision by several factors:

Addictive mechanics: According to the regulator, Polymarket uses instant gratification and variable reinforcement mechanisms that promote the development of compulsive behaviors in users. The ability to bet 24/7, without any time or stake limits, exacerbates this phenomenon.

Lack of self-exclusion tools: Unlike licensed gambling operators in France, Polymarket offers no self-exclusion, deposit limit, or time-limit features. Vulnerable players have no safeguards to protect themselves against addiction.

Influx of French traffic: The platform has seen a dramatic increase in French users in recent months, particularly ahead of major political events. The ANJ estimates this influx is partly due to unregulated marketing campaigns targeting the French public.

Lack of license: Polymarket has neither sought nor obtained a license from the ANJ, which constitutes a violation of French online gambling legislation.

How Will the Block Be Implemented?

The ANJ’s order is addressed to the main French ISPs — Orange, SFR, Bouygues Telecom, Free, as well as mobile operators. These ISPs must block access to Polymarket’s main domain name as well as any potential fallback addresses.

In practice, the block is implemented at the DNS level: ISPs must prevent the resolution of Polymarket’s domain name, so that French users cannot access the platform from their usual browser. However, this type of block can be bypassed using a VPN, which limits its long-term effectiveness.

It is important to note that this block does not directly target the smart contract or the blockchain itself on which Polymarket is based — it is a standard DNS block, similar to those already imposed on unauthorized online gambling sites or pirate streaming platforms.

A Regulatory Precedent in Cryptocurrencies

This decision by the ANJ marks an escalation in the monitoring of crypto platforms by French authorities. Until now, the regulator had mainly focused on traditional online casinos and sports betting sites. The inclusion of a decentralized blockchain-based prediction platform within the scope of regulated gambling constitutes a significant precedent.

For the French crypto industry, this decision raises questions about the scope of future regulation. If a decentralized platform like Polymarket can be targeted, other DeFi applications or social trading platforms could also be affected in the future.

The French approach contrasts with that of other jurisdictions. In the United States, Polymarket has already reached a settlement with the Commodity Futures Trading Commission (CFTC) in 2022, resulting in a $1.4 million fine and a commitment to restrict platform access for American users. In France, the approach is more radical with a outright block.

What Impact for French Users?

For French Polymarket users, options are limited. The simplest way to continue using the platform is through a VPN, which makes traffic appear as coming from another country. However, this solution is far from ideal for the average user.

More savvy users could also access Polymarket via alternative, unblocked interfaces, or through decentralized gateways. The very nature of a decentralized platform makes a complete block difficult to achieve.

Nevertheless, for the general public, the block will have a certain deterrent effect. The majority of French users will not bother to set up a VPN, which will significantly reduce French traffic to the platform — precisely the ANJ’s objective.

Reactions from the Crypto Community

The ANJ’s decision has sparked mixed reactions within the French crypto community. Defenders of decentralization see it as an attack on financial freedom and technological innovation. According to them, decentralized prediction platforms are not gambling in the traditional sense, but tools for information gathering and prediction markets.

On social media, many French crypto influencers are already calling for bypassing the block and denouncing a disguised “censorship.” Others acknowledge the need for minimal regulation to protect consumers, while regretting that the decision was made without prior consultation with industry players.

From the side of lawyers specializing in crypto, questions arise about the legal solidity of the ANJ’s decision. Some believe Polymarket could challenge the blocking order before the Council of State, invoking freedom of enterprise and the principle of proportionality. Others think the platform, lacking legal representation in France, may not take action.

European Regulatory Context

This French decision is part of a broader movement to regulate prediction platforms and cryptocurrencies in Europe. The Markets in Crypto-Assets (MiCA) regulation, which is gradually coming into force in the European Union, establishes a framework for digital assets, but decentralized prediction platforms like Polymarket find themselves in a regulatory gray area.

With this decision, France is taking the lead over its European neighbors. It will be interesting to see whether other EU countries follow suit or whether, on the contrary, a more nuanced approach is adopted. The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) are likely closely following this case.

The central question remains the legal classification of decentralized prediction platforms. Are they gambling, financial services, or a new hybrid category requiring a specific regulatory framework? The answer to this question will determine the future of these platforms in Europe.

What to Expect Next?

In the immediate term, French ISPs must comply with the blocking order under penalty of sanctions. The ANJ will monitor the effectiveness of the block and may take additional measures if circumvention becomes too widespread.

In the medium term, two scenarios are possible. Either Polymarket complies with French regulations by applying for a license and implementing the protection tools required by the ANJ — which seems unlikely given the platform’s decentralized model. Or the platform remains inaccessible in France, and French users will have to turn to regulated alternatives.

This case serves as a reminder that the decentralized world of cryptocurrencies does not escape state sovereignty and its laws. As crypto adoption progresses, regulators worldwide are refining their control tools. The ANJ’s decision is a strong signal sent to the industry: regulation of decentralized platforms is underway, and it will only intensify.

At the time of writing this article, Bitcoin (BTC) is trading at $64,592 and Ethereum (ETH) at $1,874, according to Binance data.

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