Crypto prediction platform known as Polymarket, which lets users bet digital assets on outcomes, was issued a $1.4M fine by the Commodity Futures Trading Commission (CFTC).
While Polymarket only displays the offers made by other markets, and does not get any profits from transactions, the CTFC concluded that the operations were made through an "illegal unregistered or non-designated facility."
The Commodity Futures Trading Commission stated all the markets that were advertising betting options on Polymarket should have been monitored by CFTC themselves under the Commodity Exchange Act.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
How to Learn Crypto The Easy Way? (Trending Beginners' Strategy)
According to the official report by the CFTC, due to not being able to comply with regulations previously, Polymarket was fined $1.4M. It was a reduced penalty because the platform had been cooperative in the investigation.
The Acting Director of Enforcement Vincent McGonagle was quite adamant with his position on the transparency of such markets, stating:
Market participants should proactively engage with the CFTC to ensure that our markets remain robust, transparent, and afford customers the protection provided under the CEA and our regulations.
Even though this was a harsh blow to Polymarket, the decentralized information markets platform posted on Twitter, saying that it "successfully agreed to a settlement with the CFTC, & are excited to move forward & focus on the future of Polymarket."
