The United States regulator is currently investigating Polymarket.
Polymarket is under investigation
The Commodity Futures Trading Commission (CFTC) is currently investigating the activities of the leading decentralized finance (DeFi) prediction platform Polymarket. This is according to a recent report by Bloomberg.
Citing two people close to the matter, the report said the CFTC is investigating the predication market platform for allegedly letting customers improperly trade swaps or binary options. The regulator also wants to see if the platform needs to register with the agency before offering its services.
Polymarket facilitated about 4 billion shares since the start of operations last year and is looking to raise more funds to reach a $1 billion valuation. Bloomberg added that the firm had hired the former head of the CFTC’s enforcement division to be in charge of the probe.
DeFi platforms could face similar policing like centralized platforms
The DeFi space hasn’t faced the same policing as centralized platforms. However, this latest report and similar others could indicate that the regulators might be turning their attention to DeFi companies.
Bloomberg stated that the CFTC declined to comment while Polymarket gave an answer that neither confirmed nor denied the existence of any probe.