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The Polymarket prediction market has announced that it will block access to the platform for US users. The blocking became part of an agreement to settle claims against Polymarket by the CFTC.
The fact that the US Commodity Futures Trading Commission (CFTC) is investigating the activities of the Polymarket cryptocurrency prediction market was reported back in October last year. The regulator was interested in whether American users were offered cryptocurrency options and swaps under the guise of a “tote”.
Now the parties have come to an agreement, according to which Polymarket must block access to the platform to users from the United States, as well as pay a fine of $1.4 million to the CFTC. Note that the agreement with the regulator was reached in early January.
“Users in the US can see prediction markets but will not be allowed to place bets. For users outside the US, all features will remain available. Thus, Polymarket customers will be able to access alternative information, while our company will be able to resolve issues with regulators and focus on further development, ”the company said in a statement to The Block.
So far, Polymarket has not announced plans to obtain a license to operate in the US. Earlier, Ethereum co-founder Vitalik Buterin said that the network of the second cryptocurrency is not well suited for certain applications. Including, for the use of prediction markets by platforms – the commissions in the Ethereum network are too high.
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