Man charged for betting on Taiwan election using cryptocurrency

Garance Limouzy June 19, 2024

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Man charged for betting on Taiwan election using cryptocurrency

In Taiwan, a man has been charged with violating local laws by betting on the outcome of the 2024 presidential election using the cryptocurrency platform Polymarket.

The Taiwanese news outlet LTN?revealed?that the?man, identified only as Chen,?placed bets totalling?approximately $560 in USDC (USD Coin). He wagered?472.17 USDC on the victory of Ko Wen-je in the presidential race and an additional 60.16 USDC on the Democratic Progressive Party winning a majority in the legislative seats.

Upon admitting to the charges, Chen, who had no prior criminal record, received a fine of 30,000 yuan (approximately $4,000) and was granted deferred prosecution for a year.

Taiwan’s rules regarding betting on elections

Taiwanese law strictly regulates the use of online platforms for betting on political outcomes, with penalties potentially including imprisonment, detention, or fines exceeding $3,000. In recent months, Taiwan has seen heightened enforcement efforts, including blocking access to Polymarket ahead of the presidential elections. By January, authorities had arrested 28 individuals and seized around $13,500 in cryptocurrency linked to similar violations, with potential sentences extending to five years for those found guilty of profiting from election-related bets.

Recently, controversy surrounding political betting has extended beyond Taiwan. In the UK, where betting on election outcomes is authorised and commonplace, a scandal rocked the political scene involving a close aide to the Prime Minister who placed bets on the date of the next general election.

Polymarket’s legal challenges

Polymarket, a prominent cryptocurrency betting platform, has faced legal challenges not only in Taiwan but also in other jurisdictions such as the United States. In 2022, the platform was fined $1.4 million by the Commodity Futures Trading Commission (CFTC) for failing to comply with regulatory requirements under the Commodity Exchange Act. Despite these challenges, Polymarket has continued to expand, attracting substantial investments including $70 million from notable backers like Ethereum co-founder Vitalik Buterin and Peter Thiel’s Founders Fund in May 2023.

Find out more about the latest updates and trends in the industry, from latest regulatory news to most recent innovations at the upcoming SiGMA East Europe Summit happening in Budapest from 2 – 4 September.