A man in Taiwan has been charged by prosecutors for using the cryptocurrency betting platform Polymarket to place bets on the outcome of the country’s 2024 elections, which took place on June 13.
The Shilin District Prosecutor’s Office has accused a man named “Chen” of wagering approximately 472 USD Coin (USDC) on Polymarket, betting that the Taiwan People’s Party’s candidate, Ko Wen-je, would emerge victorious in the presidential race. Additionally, Chen placed a separate 60 USD bet on the Democratic Progressive Party winning more legislative seats.
Authorities discovered that Chen had violated laws prohibiting online gambling on election results. The President and Vice President Election Recall Act in Taiwan strictly prohibits citizens from using the internet to place bets on election outcomes.
Chen confessed to the offense and was granted deferred prosecution. Due to his clean record, he was given the opportunity to defer prosecution for a year and pay a fine of 30,000 yuan (approximately $4,000).
In light of this incident, Taiwan has issued a warning to Polymarket users, cautioning them against betting on election results. The country has been investigating the use of the crypto betting platform by its citizens prior to the recent election. In 2023, individuals were summoned for questioning regarding their alleged participation in crypto betting on election outcomes.
Citizens have been advised to steer clear of crypto betting platforms for election-related wagers, as it is illegal. Offenders may face penalties such as six months of imprisonment, detention, or fines exceeding $3,000.
Polymarket is a well-known betting platform in the cryptocurrency space, offering users the opportunity to place bets on a variety of topics, from serious issues like the spot Bitcoin exchange-traded fund decision to more lighthearted subjects such as Elon Musk’s social media activity or temperature fluctuations.
Despite facing regulatory hurdles in the United States in 2022, Polymarket managed to resolve its issues with the Commodity Futures Trading Commission (CFTC) by paying $1.4 million in fines. The platform also agreed to comply with CFTC and Commodity Exchange Act (CEA) regulations.
Despite these challenges, Polymarket has continued to attract significant investments. In a notable development, Ethereum co-founder Vitalik Buterin and Peter Thiel’s venture capital firm, Founders Fund, led a $70 million investment into the platform on May 14.
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