Romania Cracks Down: Polymarket Banned After $600M Crypto Betting Surge During Elections

• Why Did Romania Ban Polymarket?
• The Three Fatal Flaws in Polymarket’s Model
• Europe’s Regulatory Domino Effect
• What’s Next for Decentralized Prediction Markets?
• FAQ: Romania’s Polymarket Ban Explained

In a MOVE shaking the decentralized prediction markets space, Romania has blacklisted Polymarket following a staggering $600 million surge in crypto-based political betting during recent elections. The country's gambling regulator (ONJN) classified the platform as illegal gambling, ordering ISPs to block access despite its crypto-native operations. This decision mirrors a broader European trend of tightening regulations on unlicensed prediction platforms, especially those influencing electoral processes. Here's why Romania drew the line—and what it means for the future of decentralized betting.

Why Did Romania Ban Polymarket?

The trigger was unmistakable: Polymarket saw explosive trading volumes during Romania’s 2025 local and presidential elections, with users speculating on outcomes like:

• Nicușor Dan – 41%
• Călin Georgescu – 27%
• George Simion – 13%

Authorities argued this wasn’t just harmless speculation. "Peer-to-peer betting on election results without fiscal controls, player protections, or KYC checks crosses into illegal gambling territory," stated an ONJN spokesperson. The regulator emphasized that using crypto (primarily USDC on Polymarket) didn’t exempt the platform from Romania’s strict gambling laws—a stance echoed recently by Belgium and Singapore.

The Three Fatal Flaws in Polymarket’s Model

Romania’s centralized gambling system leaves no gray area. Polymarket’s lack of:

1. Local licensing: Unlike licensed sportsbooks, it operated without Romanian approval.
2. Tax reporting: Authorities couldn’t track the $600M flow, a red flag for financial oversight.
3. Player safeguards: No deposit limits or addiction controls, unlike regulated EU operators.

"Whether bets are in lei or crypto, it’s still gambling," the ONJN clarified. This trifecta of violations made the ban inevitable—especially after election-related volumes drew mainstream media scrutiny.

Europe’s Regulatory Domino Effect

Romania’s move isn’t isolated. France and Germany have similarly clamped down on prediction markets during elections. The pattern is clear: regulators treat platforms like Polymarket as gambling operators if:

Industry analysts at BTCC note this could force Polymarket to pivot toward licensed sports betting—a sector with clearer (if restrictive) frameworks.

What’s Next for Decentralized Prediction Markets?

Polymarket’s recent $45M funding round led by ICE (Intercontinental Exchange) suggests institutional interest remains strong. But as one Bucharest-based fintech lawyer told me, "Regulators won’t tolerate election gambling dressed as ‘market information.’" The platform’s attempt to legitimize itself now faces a harsh reality: without local licenses, each election cycle risks repeating Romania’s block-and-ban scenario.

Ironically, this crackdown comes as Polymarket expands fiat onboarding and compliance teams. "They’re trying to play both sides," admits a BTCC market strategist. "But regulators want control—especially when politics and money mix."

FAQ: Romania’s Polymarket Ban Explained

Why did Romania ban Polymarket specifically?

Romania targeted Polymarket due to its unlicensed political betting volumes during sensitive elections, violating national gambling laws that mandate licensing, tax reporting, and consumer protections.

Can users still access Polymarket in Romania?

No. Internet service providers (ISPs) are legally required to block access to Polymarket following the ONJN’s blacklisting order.

Does this affect other crypto betting platforms?

Potentially. Romania’s decision signals stricter enforcement across Europe, especially for platforms facilitating event-based betting without licenses.