Blockchain-based prediction markets face legal challenges as Romania prohibits Polymarket due to gambling regulations

The National Office for Gambling (ONJN) in Romania has prohibited the blockchain-powered prediction market Polymarket from operating in the country due to a lack of proper licensing, presenting another regulatory setback for the platform as it eyes a return to the U.S. Romania now joins other countries such as Belgium, France, and Poland in taking action against Polymarket, all citing issues with unauthorized gambling, according to a

. ONJN determined that Polymarket’s offerings fall under “counterparty betting,” which is subject to mandatory state licensing under Romania’s gambling regulations. Officials pointed to a “dramatic surge” in platform usage during Romania’s May 2025 elections, with wagers exceeding $600 million on the presidential contest and $15 million on Bucharest’s municipal elections, as noted in an . ONJN president Vlad-Cristian Soare clarified that the prohibition was “a matter of law, not technology,” emphasizing that utilizing blockchain does not exempt Polymarket from regulatory compliance. The agency instructed internet providers to restrict Romanian users’ access to the platform “within a reasonable timeframe,” as reported.

Polymarket’s regulatory hurdles are not limited to Europe. In 2022, the U.S. Commodity Futures Trading Commission (CFTC) imposed a $1.4 million penalty on the platform and required it to block American users for running an unregistered derivatives exchange, according to

. Nevertheless, Polymarket is now preparing to relaunch in the U.S. this November, following its acquisition of QCX, a CFTC-approved exchange. This relaunch is intended to ensure compliance with federal law and set Polymarket apart from rivals like Kalshi and Truth Social’s prediction service by exclusively utilizing blockchain and stablecoins, as DL News reported. The initial phase will center on sports betting, particularly major events like the NFL and NBA.

Despite these initiatives, Polymarket continues to encounter significant regulatory resistance in both the U.S. and Europe. European authorities have repeatedly maintained that prediction markets qualify as gambling when participants wager real money on unpredictable outcomes, regardless of the underlying technology, as detailed in the iGaming Today report. In 2024, France blocked access to Polymarket after a $30 million bet on the U.S. presidential election drew regulatory attention. In the U.S., although Polymarket has obtained a no-action letter from the CFTC, inconsistent state-level rules and enforcement contribute to ongoing legal uncertainty, according to DL News.

The company’s approach to re-entering the U.S. market relies on its blockchain-centric model and plans for a proprietary token, though specifics have yet to be disclosed, as CoinDesk reported. Conversely, the Romanian ban highlights the challenges of operating in markets with strict gambling controls. ONJN cautioned that permitting unlicensed platforms to function under the label of “event trading” could establish a “dangerous precedent” that threatens consumer protections and fiscal oversight, as noted by iGaming Today.

With prohibitions now in place in four European nations and an uncertain regulatory landscape in the U.S., Polymarket’s growth ambitions underscore the ongoing friction between decentralized financial innovation and established regulatory systems. While the U.S. relaunch seeks to leverage regulatory clarity through QCX, authorities in both Europe and America continue to send a clear message: prediction markets involving real-money bets will be subject to strict regulation, as reported by CoinDesk and iGaming Today.