The betting platform Polymarket is becoming increasingly popular. But a user from Taiwan now has to pay a large fine – what happened?
Taiwan Prosecutors Accuse Man of Illegal Election Betting on Crypto Platform
Prosecutors in Taiwan have charged a man with using the cryptocurrency betting platform Polymarket to place bets on the outcome of the Taiwanese elections held in January. Authorities had previously issued warnings that such betting on election results is illegal.
The election saw Lai Ching-te, the presidential candidate of the Democratic Progressive Party (DPP), emerge victorious. According to Polymarket odds, Lai was the clear favorite to win. Polymarket, the world’s largest prediction market, is widely used by gamblers within the crypto space.
The accused gambler, identified as “Chen,” placed a bet of 472 USDC on Ko Wen-je, the candidate from the Taiwan People’s Party (TPP), to win the presidency. Chen also wagered $60 on the DPP winning more seats in the legislature. Unfortunately for Chen, both bets did not pan out. The TPP secured one more seat than the DPP, winning a total of 52 seats.
Adding to his personal financial loss, Chen now faces legal penalties. He has been fined 30,000 yuan (approximately $4,000). Due to his lack of prior convictions, he has been granted a one-year postponement of criminal prosecution.
In Taiwan, the “Law on the Removal of the President and Vice President” explicitly forbids citizens from betting on election outcomes over the internet. While Polymarket, as a decentralized forecasting platform, cannot be easily shut down, local regulations remain stringent. Violations of this law can result in severe penalties, including a six-month prison sentence, arrest, or fines exceeding $3,000.
This case underscores the challenges that regulatory bodies face in policing illegal activities on decentralized platforms and serves as a reminder of the legal risks associated with online election betting in Taiwan.
