Portugal’s gambling regulator has told blockchain-based prediction market Polymarket to stop operating in the country within 48 hours after a surge of activity tied to Sunday’s presidential election exposed legal frictions between crypto-native markets and national gambling rules. What happened - Rádio Renascença reported that wagers tied to the Jan. 18 vote topped €103 million (about $120 million) on Polymarket, a spike that prompted the Serviço de Regulação e Inspeção de Jogos (SRIJ) to act. - SRIJ says Polymarket is operating without a Portuguese licence and therefore illegally, because Portugal’s 2015 online gambling law permits betting only on sports, casino games and horse racing — not political events or other “real-world” outcomes. How Polymarket works and why regulators object - Polymarket is a blockchain-based prediction market where users buy outcome-linked shares on events ranging from elections and geopolitics to sports and economics. The platform’s decentralized, crypto-native design can rapidly concentrate liquidity around a single market — as happened with the presidential race — drawing regulator attention. - SRIJ’s order prohibits Polymarket from offering political markets in Portugal, regardless of whether the events are domestic or international. Enforcement, access and wider fallout - The regulator formally ordered Polymarket to leave Portugal within 48 hours. The site remains accessible for now, but SRIJ could next ask internet service providers to block access or pursue other enforcement measures. - Other prediction platforms such as Kalshi, Myriad and Limitless appear reachable in Portugal, though SRIJ’s action specifically targets Polymarket’s licensing and political markets. Why this matters for crypto and prediction markets - The episode highlights the clash between fast-moving, blockchain-enabled markets and national gambling regimes that don’t recognize political betting. High-volume election markets concentrate capital and public attention, accelerating regulatory responses that might not arrive for smaller, niche markets. - Polymarket — founded in 2020 — has already faced restrictions in more than 30 countries, including Singapore, Russia, Belgium, Italy and recently Ukraine. Regulatory responses vary: Belgium has blacklisted the site, while France has limited access to “view-only” mode for local users. What to watch next - Whether Portugal moves to block access or pursue fines or other legal remedies; how Polymarket responds; and whether other jurisdictions revise rules for crypto-enabled prediction markets in light of election-driven liquidity spikes. The enforcement action in Portugal is the latest sign that prediction markets built on blockchain are increasingly intersecting with conventional gambling law — and that regulatory pressure can escalate quickly when political events concentrate large sums of capital on a single platform. Read more AI-generated news on: undefined/news