US regulator for commodities and futures CFTC, cryptocurrency based prediction market Polymarket’I officially closed it.
Blockratize Inc., the parent company of Polymarket, was found guilty of offering exchange-level binary options contracts, according to a press release issued by the CFTC.
The CFTC stressed that the platform has launched more than 900 products like this, which is illegal without regulation.
Polymarket is Shutting Down
Polymarket until now, it allowed users to make predictions about real-world events and earn money accordingly.
The events in question include the number of COVID-19 cases, national inflation rates, political elections and even candidacy.
The CFTC told Polymarket that these could only be offered on a regulated exchange. $1.4 million fined and then decided to close the platform.
Polymarket had recently secured $4 million in funding and had its growth plans approved. It was quite unfortunate that such a fine of 1.4 million dollars came and the decision to close was taken.
Cryptocurrency-based prediction markets are actually not very compliant with US regulations, and many similar projects have avoided the US before for this reason.
Projects such as Augur and Omen also seem to be at risk after the current closure decision. It seems that the projects that the USA cannot close in this context will be completely decentralized ones.