A man in Taiwan was recently accused by prosecutors of using the crypto betting platform Polymarket to place bets on the outcome of the country’s 2024 elections, which took place on June 13. The individual, identified only by the surname “Chen,” reportedly wagered around 472 USD Coin (USDC) on Polymarket, predicting that the Taiwan People’s Party candidate Ko Wen-je would emerge victorious in the presidential race. Additionally, Chen also placed a separate bet of 60 USD on the Democratic Progressive Party winning more legislative seats.
Following an investigation, authorities found that Chen had violated Taiwan’s laws prohibiting online gambling on election results. Under the President and Vice President Election Recall Act, citizens are forbidden from using the internet to wager on political outcomes. Chen confessed to the offense and was granted deferred prosecution, given his clean record. He was required to pay a fine of 30,000 yuan (approximately $4,000) and will be monitored for a year.
In light of these incidents, Taiwan issued a warning to Polymarket users, cautioning them against betting on election results. The country has been cracking down on individuals participating in crypto betting activities ahead of elections, as evidenced by summonses issued to suspects in 2023 for similar offenses. Violators could potentially face imprisonment for up to six months, detention, or fines exceeding $3,000.
Polymarket is a well-known betting platform within the crypto community, offering users the opportunity to gamble on a wide range of topics, from significant events like Bitcoin ETF decisions to more trivial matters such as social media activity predictions. Despite facing regulatory challenges in the past, including a settlement with the Commodity Futures Trading Commission (CFTC) and fines totaling $1.4 million, Polymarket has continued to attract investors and thrive in the market. In a recent development, Ethereum co-founder Vitalik Buterin and Peter Thiel’s venture capital firm, Founders Fund, led a $70 million investment in the platform.
Overall, the case involving Chen serves as a reminder of the legal risks associated with using crypto betting platforms for election-related gambling activities, highlighting the importance of complying with existing regulations to avoid potential penalties or legal consequences.