Regulation
Polymarket Faces French Ban After Massive Bets On US Election Results
Polymarket, a crypto-based prediction market, is likely to be prohibited by France’s gambling regulator, the ANJ, after a huge amount of bets were placed on the 2024 U.S. presidential election. Since the global audience engaged in prediction platforms, Polymarket experienced a record jump, with $450 million expected to be distributed to users following the victory of Donald Trump.
This increase of betting volume and large stakes has become a matter of concern for the French regulator because the platform offers unlicensed gambling services.
$450 Million in Payouts Expected After U.S. Election Bets
Prediction markets, which are expected to increase their payout to election bettors to around $450m following Donald Trump’s projected win, are attracting increasing attention.
Although conventional polls pointed to a closer contest, prediction markets such as Polymarket and Kalshi recorded a steep rise in Trump’s chances in the last few days, indicating a strong divergence with poll-based expectations.
Among the active users of Polymarket, a French trader called “Theo” made a $26 million bet on Trump’s win and won $49 million. This big bet made Polymarket popular, as the French authorities paid attention to the platform and its popularity among French residents, which led to concerns about the compliance of the platform with French gambling legislation.
France’s ANJ Considers Blocking Access to Polymarket
The ANJ has claimed that Polymarket is involved in gambling which is only allowed in France by licensed operators. According to local media, the regulator has the power to ban access to unlicensed gambling sites and is expected to restrict access to Polymarket soon.
An ANJ insider said: “Polymarket is just betting on something that is completely uncertain, which is exactly what gambling is.”
If put in place, the ban would prevent the usage of the application in France, despite the fact that users can still try to avoid the restriction by connecting to VPN. The ANJ could also try to influence media outlets and directories to stop advertising or linking to Polymarket and, thus, limit its audiences even more.
Regulatory Concerns Over Market Manipulation
The high level of activity on Polymarket has led to speculations that the platform may be used for market manipulation. Two blockchain analysis firms, Chaos Labs and Inca Digital, recently revealed that there was potential wash trading within Polymarket’s U.S. presidential betting market where the same assets are bought and sold to simply create a fake market. This type of trading is rather manipulative and can lead to the distortion of signals on the market and mislead other participants.
The US Commodity Futures Trading Commission also has concerns about prediction markets and put forward a rule in May aiming at stricter regulation of such markets due to the potential for manipulation.
Although no final decision has been reached, regulatory actions could impact Polymarket’s ability to operate freely in other markets, including the U.S.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
- Cambodia has intensified its digital assets regulatory measures.
- It has placed a ban on 16 popular cryptocurrency exchange platforms.
Cambodia has reportedly blocked websites of 16 crypto exchanges amid regulatory efforts to combat potential crypto related crime. Among those blocked are Binance and Coinbase.
Binance is the world’s largest cryptocurrency exchange by trading volume and global user count, while Coinbase is the largest US-based crypto exchange.
Cambodia’s crackdown on unregistered exchanges
In a move to regulate the crypto space, the Cambodian government requires the exchanges to obtain a legal licence from the country’s Security and Exchange Regulator and the said exchanges failed to do so.
The Cambodian Telecommunication Regulator cited that the 102 sites banned were linked to online gambling. Shockingly, Binance which had signed a partnership with the Cambodian authorities in 2022, is among those whose sites are inaccessible following the TRC ban.
However, despite this ban, most of the banned exchanges’ mobile apps remain functional.
The National Bank of Cambodia banned the use of cryptocurrency in 2017 though citizens continued to gamble and do online exchanges of the said digital assets. The recent ban, as Nikkei Asia reported, is because the exchanges lack the licenses as required by TRC.
Despite the unfolding development, exchanges and other platforms play a huge role in the development of the country’s growing digital assets economy
Binance presence in Cambodia
In 2022, Binance signed an agreement with SERC to support Cambodia’s digital assets. The exchange went further to cement its presence in the country with a partnership with the conglomerate Royal Group.
Binance is among multiple exchanges that also faced a similar scenario to that reported in Cambodia earlier this year.
In January 2024, Indian authorities banned several platforms for failing to register.
This came a few days after India’s Financial Intelligence Unit pushed for the removal of exchange apps of several crypto exchanges from the Apple App Store and Google Play Store. It wasn’t until August 2024 that Binance officially reentered the Indian market, paying a $2 million penalty in the process.
A Delaware Court judge has once again rejected Elon Musk’s $56 billion pay package. The decision, issued by Judge Kathaleen McCormick, strikes down the compensation agreement despite shareholders’ attempt to “re-ratify” the deal. McCormick’s ruling follows a previous judgment in January, where the pay package was invalidated. The judge’s decision adds another layer to the ongoing legal battle, with Tesla expected to pursue an appeal.
Elon Musk’s $56B Tesla Compensation Deal Invalidated: Court Ruling Details
According to a Monday court filing, Judge Kathaleen McCormick has denied the tech company’s request to revise her earlier decision regarding Elon Musk’s pay package. The legal team for Tesla had argued that the recent shareholder vote to “re-ratify” the deal addressed the court’s concerns from the first ruling.
However, McCormick rejected this argument, citing that despite the vote, the pay package remained problematic.
The judge maintained that the CEO’s compensation deal was influenced by his power over the board of directors, leading to terms that were not “entirely fair.” In her opinion, Tesla had failed to ensure that investors were fully informed before agreeing to the pay package. McCormick reiterated that while the board could have chosen an appropriate amount of compensation, it capitulated to Elon Musk’s terms, which the court found to be excessive.
The judge added,
“There were undoubtedly a range of healthy amounts that the Board could have decided to pay Musk. Instead, the Board capitulated to Musk’s terms and then failed to prove that those terms were entirely fair.”
Moreover, the legal setback also carries a financial penalty for Tesla. In addition to the ruling on the compensation package, the court awarded the plaintiff’s attorneys a $345 million fee, which the tech company must pay in cash or shares.
In response, the Tech giant said,
“This ruling, if not overturned, means that judges and plaintiffs’ lawyers run Delaware companies rather than their rightful owners – the shareholders.”
Tesla To Appeal Ruling At Delaware Supreme Court
Following McCormick’s decision, the tech company will appeal the ruling to the Delaware Supreme Court. The company had hoped that the re-ratification by shareholders would allow the deal to proceed, but McCormick’s decision has created additional legal hurdles.
A Delaware judge just overruled a supermajority of shareholders who own Tesla and who voted twice to pay @elonmusk what he’s worth.
The court’s decision is wrong, and we’re going to appeal.
This ruling, if not overturned, means that judges and plaintiffs’ lawyers run Delaware…
— Tesla (@Tesla) December 2, 2024
The decision also raises broader questions about corporate governance and executive compensation in the tech industry. The outcome of the appeal could set an important precedent for future cases involving large executive pay packages.
In other legal developments, the tech giant CEO filed a lawsuit against OpenAI and Microsoft, accusing the companies of engaging in anti-competitive practices. The lawsuit, filed in the U.S. District Court for the Northern District of California, claims that OpenAI’s shift to a for-profit model undermines competition in the AI sector. Elon Musk’s legal team argues that OpenAI, backed by a $13 billion investment from Microsoft, has been using its influence to suppress competitors, including xAI.
Despite the ongoing legal challenges surrounding his pay package, Musk experienced a positive outcome in a separate legal battle. A U.S. District Court judge recently ruled in Musk’s favor in a case involving the U.S. Securities and Exchange Commission (SEC). The SEC had sought to sanction Elon Musk over his handling of the X acquisition, but the court denied the request. The court noted that Elon Musk had already reimbursed the SEC for costs related to a missed meeting.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
US Representative French Hill has outlined a plan to thoroughly investigate Operation Chokepoint 2.0, a campaign allegedly targeting industries like digital assets. Hill emphasizes regulatory fairness, transparency, and proportionate oversight, seeking to reverse politically motivated debanking practices under the current administration.
French Hill Vows To Investigate Operation Chokepoint 2.0 Debanking Practices
Rep. French Hill has publicly committed to investigating Operation Chokepoint 2.0, a campaign accused of politically targeting industries by denying them access to financial services. Hill stated that financial institutions should not terminate customer accounts without valid, material reasons, framing such actions as weaponization of government resources.
He underscored the importance of fairness and transparency in financial regulations, calling the practice detrimental to lawful businesses.
In a recent social media post, Hill condemned the continuation of these practices under the Biden-Harris administration, citing parallels to the original Operation Choke Point. He announced his intention to push for legislative scrutiny of the actions and policies of regulatory agencies to determine their adherence to legal standards. In addition, Hill expressed a strong stance on eliminating what he described as political targeting in financial oversight.
The US Congressman emphasized,
“There should be no place for politicized debanking of legal businesses in the American financial system. I plan to fully investigate “Operation Choke Point 2.0”.
Moreover, Charles Hoskinson reiterated French Hill’s call for transparency and fairness in financial regulations, emphasizing urgent legislation to protect crypto businesses from Operation Chokepoint 2.0. He urged collaborative action to prevent further economic and emotional harm to the industry.
Regulatory Tailoring and Optional Climate Stress Tests
More so, French Hill emphasized the importance of tailoring financial oversight to individual institutions as part of his broader reform plan. Hill proposed requiring federal prudential regulators to consider factors such as size, risk profile, and business model when implementing policies. This approach will prevent one-size-fits-all regulations and ensure that smaller community banks and credit unions are not unfairly burdened.
Hill also advocated for making climate stress testing optional for financial institutions. He argued that climate-related risks should be assessed within existing frameworks like credit and operational risk evaluations. This practice will eliminate the need for overlapping mandates.
Industry Leaders Join Calls for Action
Meanwhile, the remarks by French Hill align with calls from industry figures for more transparency and fairness in financial regulations. Coinbase Chief Policy Officer Faryar Shirzad recently urged enhanced public disclosure regarding regulatory actions.
However, Faryar Shirzad expressed optimism about the swift passage of pro-crypto legislation under Donald Trump’s administration. He highlighted the presence of a historically pro-crypto Congress, with Republicans controlling both the Senate and the House. Shirzad expects key bills, such as the FIT 21 Crypto Bill and the Clarity for Payment Stablecoins Act, to advance rapidly.
In Barbados, entrepreneur Gabriel Abed shared his experience of being debanked by First Citizens Caribbean Bank after a Bitcoin-related deposit. Similar cases illustrate the broader challenges facing businesses in the digital asset space. More so, Hoskinson called on the crypto industry to collaborate and advocate for laws to prevent such practices.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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