The Ministry of Social Rights, Consumer Affairs and Agenda 2030 has opened a sanctions file against prediction market platforms Polymarket and Carsi, ordering them to be preemptively blocked in Spain for operating without the necessary license for gambling activities.
According to an official statement released this Monday, May 25th, both platforms plan to offer betting services on future events without permission from the Directorate General of Gambling Regulation (DGOJ). This notification was made through the Official Gazette (BOE). Unable to contact operator directlybased overseas.
This requires administrator licenses, user authentication systems, protection of minors, anti-money laundering, and responsible gaming tools.
Polymarket in particular is one of the most popular platforms in the cryptocurrency ecosystem. It operates on the Polygon network and uses the USDC stablecoin for predictive contracts, allowing users to buy and sell stocks based on election results, economic indicators, sports and geopolitical events, as reported by CriptoNoticias.
Calci uses a similar model, but is more focused on the US regulated market. DGOJ categorizes these prediction markets as follows: A game of chance where you bet on an uncertain outcome.
Regulatory discussion on polymarket closures
The decision reignites the debate between technological innovation and consumer protection. While Spanish authorities have defended the need to regulate these platforms to provide guarantees and avoid risks related to gambling, some sectors have argued for the importance of decentralized prediction markets. Represents an advanced tool for discovering information Market prices can be set more efficiently than traditional mechanisms.
This is the position of Kiko Llanelas, head of data at the Spanish newspaper El País, who recently wrote: “These platforms provide instant intelligence. (…) You can get a reasonable estimate in as little as three minutes at Polymarket.
And he added: “There are virtues in the money market too. (…) What does not make sense is to cut off entire instruments because of their worst use.
Polymarket gained special relevance after the 2024 US presidential election, with its operating volume sometimes exceeding that of traditional large gambling companies. This growth has sparked enthusiasm among investors and analysts and concerns among regulators.
The sanctions process, estimated to take three to four months to resolve, includes technical blocking of websites and is expected to take effect within days. Users in Spain may be able to access the platform this Tuesday, May 26th or Wednesday, May 27th, before the block is implemented.
The user trying to access the Message warning you that you are an unauthorized operator. With this move, Spain brings itself in line with the trend of tighter regulation of platforms that combine elements of gaming, finance and cryptocurrencies.
In Latin America, countries such as Argentina, Brazil, and Colombia also blocked the platform for compatriots.
The case highlights the challenges faced by European regulators in balancing user protection with the development of new financial technologies in an increasingly global marketplace.
(Tag translation) Cryptocurrency
