Taiwanese authorities warn against cryptocurrency betting in upcoming presidential election
As Taiwan’s presidential election approaches on January 13, 2024, citizens are advised not to use cryptocurrency betting platforms to bet on the election results.
Ongoing investigations into these activities have called for caution and have resulted in numerous people being questioned.
Polymarket betting under scrutiny
The report highlights the participation of Taiwanese residents in election betting on decentralized platform Polymarket.
Prosecutors and investigators subpoenaed several people on suspicion of participating in Polymarket betting.
It is important to acknowledge that engaging in election-related gambling activities in Taiwan is expressly prohibited by law and could potentially violate Article 88-1 of the Election and Recall Act.
The legal consequences for such violations are severe, and may result in imprisonment of up to six months, imprisonment, or a fine of up to 100,000 New Taiwan Dollars (approximately $3,188).
Polymarket regulatory challenges
This position has been further strengthened by the recent recall of individuals involved in Polymarket betting.
Interestingly, Polymarkets is facing regulatory issues in the US in 2022.
The New York-based company faced legal proceedings initiated by the Commodity Futures Trading Commission (CFTC) in January 2022.
The CFTC claimed that Polymarket has been operating an “illegal unregistered or undesignated facility” since June 2020.
U.S. regulatory turmoil and surge in transactions
During the 2020 US Presidential Election, Polymarket experienced a surge in trading activity, reaching a new trading volume record of over $10 million.
These regulatory issues highlight the complexities facing platforms involved in election-related betting.
Considering this situation and the legal implications, Taiwanese authorities are sternly warning citizens not to use cryptocurrency betting platforms to bet on the upcoming presidential election.
As Election Day approaches, it is important for individuals to comply with their country’s laws and regulations to avoid potential legal consequences.