- The enforcement action also comes as Dutch policymakers debate tighter regulations impacting digital assets.
- The House of Representatives of the country has progressed a proposal rolling out a 36% capital gains tax on some investments.
The Netherlands Gambling Authority has ordered its Dutch affiliate, Adventure One, to put a stop to providing betting services to natives without permission, marking a move against prediction markets platform Polymarket.
As per the notice released on February 17, the regulator mentioned that the company must ban its activities quickly or risk penalties of up to $990,000. Officials mentioned that the platform permitted users in the Netherlands to place bets banned under national law, comprising contracts associated with local elections, and had not replied to previous requests from authorities to address the issue.
Ella Seijsener, the director of licensing and supervision of the authority, said that prediction markets are increasing, including in the Netherlands. She also mentioned that such operators offer wagers that aren’t permitted in the Dutch market under any circumstances, even for licensed gambling firms.
At the beginning of this year, the CLO of the company, Neal Kumar, mentioned the company was open to discussions with regulators while US federal courts look for questions over oversight of prediction markets.
The Hold of The Operations
The debate reflects wider regulatory tension around event-based contracts. In the US, platforms providing similar products have drawn investigation from state authorities, many of which claim the services look like sports betting.
Meanwhile, leadership at the Commodity Futures Trading Commission has pushed back against state interference, saying it has federal jurisdiction over prediction market activity. The enforcement action also comes as Dutch policymakers debate tighter regulations impacting digital assets.
The House of Representatives of the country has progressed a proposal rolling out a 36% capital gains tax on some investments, a measure anticipated to cover cryptocurrencies if approved.
Currently, the order of the regulator has placed Polymarket’s operations in the Netherlands on hold, underscoring how quickly increasing prediction markets are hitting with national gambling frameworks over various jurisdictions.
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Source: https://thenewscrypto.com/dutch-regulator-orders-polymarket-to-halt-betting-services/
