CFTC investigating Polymarket prediction platform: Reports
Reports are claiming the CFTC is doing an investigation on the Polymarket platform, whether they are registered, service providers.
On 23 October, Bloomberg published a report on prediction platform Polymarket and claimed that they got information that the United States Commodity Futures Trading Commission (CFTC) is doing an investigation against the company.
According to the report, CFTC wants to figure out all the transparency of the operations of Polymarket. Agency will focus on the registration status of the swap & Binary trade option of the platform, whether they are registered with the financial regulators or not.
In response to the report by Bloomberg, a spokesperson of the Polymarket tried to explain that operations of Polymarket are fully under legal procedures. The spokesperson added
“Polymarket is firmly committed to complying with applicable laws and regulations and to providing information to regulators that will assist them with any inquiry.”
Reports also claimed that the Polymarket team had some activities to address this matter, with the former director of the CFTC’s enforcement James McDonald.
Polymarket provides a speculation based product to their clients like a variety of novelty predictive markets. Users at the platform can predict the outcome of the future market event and can set their positions with USD. But as we know that Polymarket is decentralized, so the company doesn’t place any position against their users.
Experts say that the eye of watchdogs on the Polymarket is wandering because of the recent fundraising by the company. The company secured $1 billion through fundraising.
CFTC new target After Tether & Bitfinex
Recently, the CFTC agency ended the case against Tether & Bitfinex with a total $42.5 million fine. Now it seems that CFTC is ready to take action on Polymarket.
However, the action of CFTC can’t be blind fire because Tether & Bitfinex were under the CFTC probe because of allegations & reports by their users.
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