According to recent reports, the Dutch arm of the prediction markets platform Polymarket has been asked to cease its activities in the Netherlands. This order comes as the latest regulatory blow dealt to the prediction market platform in recent weeks.
Dutch Regulator Threatens Polymarket With $840,000 FineWhile prediction markets do not particularly fall into the traditional gambling category, the Netherlands Gambling Authority has classified them as betting. The regulator revealed that it contacted Polymarket about its activities on the Dutch market, but have seen no corrective action or response from the prediction markets company.
Netherlands Gambling Authority’s director of licensing and supervision, Ella Seijsener, said in the notice:
Prediction markets are on the rise, including in the Netherlands. These types of companies offer bets that are not permitted in our market under any circumstances, not even by license holders. Besides the social risks of these kinds of predictions (for example, the potential influence on elections), we conclude that this constitutes illegal gambling. Anyone without a Ksa license has no business in our market. This also applies to these new gambling platforms.
This has led to an issue of jurisdiction, as the CFTC chair criticized the state-level scrutiny which undermines their federal authority over prediction markets.
Dutch Unrealized Gains Tax On Crypto Rolls OnThis crackdown on prediction markets comes just a week after the Dutch House of Representatives advanced a proposal to introduce a 36% capital gains tax on most liquid investments, including cryptocurrencies. This controversial bill, if passed, would see profits made from interest-bearing financial instruments, equity investments, cryptocurrencies, and savings accounts be subject to tax, whether realized or not.
