CFTC Imposes $1.4M Fine on Crypto Prediction Platform Polymarket
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4 January

Polymarket, a New York-based crypto prediction platform, has just reached a settlement with the US Commodity Futures Trading Commission (CFTC) to pay a $1.4 million fine.

Yesterday, January 3, the CFTC announced it had entered a simultaneous filing and settlement order charging Polymarket after finding the platform had allegedly operated an "unregistered or undesignated illegal facility" since June 2020.

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Under the order, Polymarket, which is a decentralized platform that allows users to bet on market outcomes of events such as sports games and political elections through binary options contracts, is required to pay civil monetary penalty of $1.4 million along with the liquidation of any markets on the platform that fail to comply with CFTC and Commodity Exchange Act (CEA) regulations.

It should be noted the company intends to continue trading. It has demonstrated this after posting a tweet today in which it states that it is "excited to move forward."

The CFTC has fined the platform because, according to the regulator, event market contracts backed by a pair of binary options "constitute swaps" under its jurisdiction and platforms offering market exposure must be regulated under the CFTC and CEA.

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