CFTC fined Polymarket DeFi platform $1.4 million

by in DeFi News

CFTC

The US CFTC fined the Polymarket prediction platform $1.4M for servicing OTC binary options trading without proper registration.

“Polymarket has offered over 900 different event markets since its beginning by hosting smart contracts on the blockchain to manage them. Polymarket creates, defines, maintains and trades, and enforces binary options contracts on its website,” reads the press release.

The CFTC added that "all derivatives markets must work within the law, regardless of the technology operated."

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According to the report, cooperation with the regulator provided Polymarket with a reduced fine. The project confirmed the "successful settlement" of the issue.

Polymarket allows you to place bets on real-world events, such as the deadline for approving an infrastructure plan or the number of people infected with COVID-19. Automatic market maker technology is used to determine prices.

Recall that in December 2021, Rosteen Benam became the new head of the CFTC, who in October proposed expanding the authority of the department in terms of regulating cryptocurrencies.