Romanian authorities have declared the blockchain-based prediction platform Polymarket an illegal gambling operator, ordering internet service providers to block access to the site. The move places Romania on a growing list of nations cracking down on crypto-powered betting markets that operate outside traditional regulatory frameworks.

Election Betting Triggers Regulatory Action

The decision from the National Office for Gambling (ONJN) came after Polymarket saw a massive surge in activity during the country’s recent presidential and local elections. Trading volumes reportedly exceeded $600 million as users used crypto tokens to speculate on political outcomes, drawing the attention of financial regulators.

The ONJN rejected Polymarket’s claim of being an “event trading” marketplace. Instead, the agency classified its model as “counterpart betting,” where users wager against each other while the platform takes a commission. Vlad-Cristian Soare, the head of the ONJN, stated that the underlying technology doesn’t change the nature of the activity. “Whether a person bets in cash or crypto, it’s still gambling,” he said, emphasizing that the issue is legal, not technological. Officials also cited the platform’s failure to implement required anti-money laundering controls, player protection measures, and tax reporting.

A Familiar Global Pattern

Romania’s action is not an isolated event. In 2022, the U.S. Commodity Futures Trading Commission (CFTC) fined Polymarket for operating unregistered derivatives markets, which led to the platform blocking American users. Similar restrictions have been imposed in countries like Belgium, France, Poland, Singapore, and Thailand, all stemming from the same core issue: regulators view these platforms as betting services, regardless of the blockchain infrastructure they run on.

Expansion Despite Headwinds

Despite mounting regulatory pressure, Polymarket has continued to attract significant interest from institutional players. The platform recently secured a $2 billion investment from the Intercontinental Exchange, the parent company of the New York Stock Exchange, signaling that traditional finance sees potential in decentralized prediction markets.

While closing its doors in Romania, Polymarket is planning a cautious reentry into the United States. Reports indicate the company aims to restore limited access for U.S. users by the end of November, focusing initially on sports betting rather than more controversial political or economic events. This move follows a related exchange, acquired by Polymarket, receiving a no-action letter from the CFTC, creating a narrow path for a compliant relaunch.

Prediction Market or Digital Casino?

The debate surrounding Polymarket highlights a fundamental conflict. Supporters argue that it represents a novel way to crowdsource information and measure public sentiment on real-world events. Regulators, however, remain largely unconvinced, seeing it as little more than a gambling platform in disguise. Romania’s decision underscores the widening gap between the global ambitions of crypto projects and the authority of national laws, leaving a critical question unanswered: can prediction markets ever be treated as financial instruments, or will they always be seen as a casino?