US government authorities are reportedly intensifying scrutiny on Polymarket, a prediction market platform, due to concerns that users based in the US might be bypassing restrictions intended to prevent access to the site. The platform employs geoblocking techniques to restrict access to residents of sanctioned countries, necessitating users to use a VPN to evade these controls. Recently, the FBI seized devices belonging to Polymarket's CEO over these issues, reflecting a broader regulatory push against platforms that allow US users to engage in potentially prohibited trading. The incident is reminiscent of previous actions taken against Binance, which faced a significant settlement for enabling trades by US users, despite its geoblocking efforts. As crypto technology permits users globally to interact with platforms directly, the challenge for regulation persists, with basic tools such as VPNs allowing users to navigate restrictions. This situation underscores an ongoing tug-of-war between innovative blockchain applications and regulatory frameworks in the US.

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