Polymarket, a New York-based cryptocurrency forecasting platform, has reached a settlement with the Commodity Futures Trading Commission (CFTC) to pay a $1.4 million fine.
Polymarket is a decentralized platform that allows users to The outcome of the event market For example, professional sports competitions and political elections through binary options contracts.
On January 3, the CFTC announced that it had Enter The order was submitted and the allegations against Polymarket were resolved at the same time, and it was discovered that the platform had been operating “illegal unregistered or non-designated facilities” since June 2020.
According to the order, Polymarket is required to pay a civil fine of 1.4 million U.S. dollars and cancel any market on the platform that does not comply with the CFTC and the Commodity Exchange Act (CEA). Polymarket responded with a tweet on January 4, stating that they were “very happy to move on.”
We are pleased to confirm that we have successfully reached a settlement with the CFTC and are pleased to move forward and focus on the future of Polymarket.
According to the order, 3 markets that continue to exceed 1/14 of the law will be resolved in advance.More soon
-Polymarket (@PolymarketHQ) January 3, 2022
The CFTC stated that event market contracts backed by a pair of binary options “constitute a swap” within its jurisdiction, and platforms that provide market exposure must be regulated by the CFTC and CEA.
In the announcement, the Acting Director of Law Enforcement of CTFC Vincent McGonagle (Vincent McGonagle) urged derivatives platforms to register with law enforcement agencies. He paid particular attention to Decentralized finance (DeFi) Department:
“Regardless of the technology used, all derivatives markets must operate within the scope of the law, especially in the so-called decentralized finance or’DeFi’ field.”
However, the CFTC did notice that Polymarket received a reduced civil penalty due to “substantial cooperation” with the investigation of the platform.
Cointelegraph reported as early as October 2021 that the US Commodity Futures Trading Commission (CFTC) Investigate Entering Polymarket, it is reported that the platform hired former CTFC law enforcement chief James McDonald to handle the investigation.