Portugal Orders Polymarket Shutdown Amid Presidential Election Bets

In Brief

• SRIJ orders Polymarket to cease operations after illegal election betting surge.
• Polymarket faces scrutiny for insider trading concerns in presidential market.
• Bitcoin and Ethereum face downward pressure, with $90K and $3K support tested.

Portugal’s gambling regulator, SRIJ, has ordered Polymarket to shut down after a surge in betting tied to the presidential election. The platform was found to be operating illegally, with no authorization to offer betting services in Portugal.

Polymarket’s Presidential Election Market Draws Scrutiny

Polymarket saw over €103 million in betting volume, with more than €4 million placed in the hours before the results of the Jan. 18 election were announced. According to SRIJ, the platform violated national laws, as betting on political events is prohibited in Portugal. 

The regulator raised concerns over possible insider trading, as betting odds for António José Seguro shifted dramatically before the official results were revealed.

SRIJ confirmed it had recently become aware of Polymarket’s activities, stating that “the website is not authorized to offer betting in Portugal, as national law prohibits betting operations regarding political events.” 

With Polymarket given 48 hours to cease operations, the platform remains accessible in Portugal, though regulators may soon block it through internet service providers. The betting activity has sparked questions over exit poll leaks and insider knowledge, with more than €5 million traded on the platform in the two hours before the results were made public.

Market Struggles Amid Institutional Hedge Moves and Crypto Decline

As the crypto market faces uncertainty, Bitcoin (BTC) is trading around the key $90K support level, with Ethereum (ETH) nearing the $3K mark. Bitcoin’s ETF outflows this week suggest institutions are hedging their positions amidst ongoing volatility.

Bitcoin is currently priced at $90,822, down 1.87%, while Ethereum sits at $3,113, down 2.58%. The Fear and Greed Index (FGI) is at 32, indicating market fear, and with $286 million in liquidations, the overall market sentiment remains cautious.

Investors continue to navigate a market plagued by uncertainty, as major cryptocurrencies test key support levels.