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Regulators in Indonesia and Spain have blocked access to prediction market platforms Polymarket and Kalshi after determining the services violated national gambling laws. Indonesia imposed restrictions following the launch of a Polymarket market asking users to predict whether President Prabowo Subianto would leave office early, while Spain ordered temporary nationwide blocks on both platforms for operating without required administrative authorization. Both countries argued prediction markets offering wagers on uncertain future events must comply with licensing, identity verification and consumer protection requirements under local gambling regulations.
Indonesia Blocks Polymarket After Presidential Market Launch
Indonesia blocked access to Polymarket after authorities classified the platform as illegal online gambling tied to speculative betting markets. Officials stated that betting and speculation on unresolved outcomes remained illegal under Indonesian regulations, regardless of the platform's use of blockchain technology and crypto assets.
The crackdown came days after a Polymarket market gained attention online following President Prabowo Subianto's announcement of plans to centralize oversight of major commodity exports. According to Reuters, the market asked users to predict whether Prabowo would leave office early.
Alexander Sabar from Indonesia's communications ministry said authorities were also reviewing social media accounts connected to Polymarket as part of efforts to tighten restrictions. A Polymarket spokesperson said the company was open to discussions with Indonesian authorities regarding "responsible innovation, transparency and user protection in prediction markets".
Spain Orders Temporary Nationwide Blocks on Two Platforms
Spain ordered nationwide blocks on Polymarket and Kalshi while investigations into the companies continue. The country's gambling regulator said both platforms were operating without the required administrative authorization to provide services locally.
Spanish authorities stated that prediction markets fall within gambling laws when users place wagers on uncertain outcomes. Regulators raised concerns that the platforms lacked safeguards required under Spanish law, including identity checks, controls preventing minors from participating and self-exclusion tools for users experiencing gambling problems.
FAQ
Why did Indonesia block Polymarket?
Indonesia blocked Polymarket after authorities determined the platform violated national gambling laws. Officials stated that betting and speculation on unresolved outcomes remained illegal under Indonesian regulations, despite the platform operating through blockchain technology and crypto assets.
What regulatory requirements did Spain cite for blocking Polymarket and Kalshi?
Spanish authorities stated both platforms were operating without required administrative authorization. Regulators also noted the platforms lacked safeguards required under Spanish law, including identity checks, controls preventing minors from participating and self-exclusion tools for users experiencing gambling problems.
What was Polymarket's response to the Indonesian block?
A Polymarket spokesperson said the company was open to discussions with Indonesian authorities regarding "responsible innovation, transparency and user protection in prediction markets".
