Taiwanese Citizen Faces Charges for Using Polymarket to Wager on 2024 Elections
A man from Taiwan, identified as “Chen” by local prosecutors, has been accused of utilizing the cryptocurrency betting platform Polymarket to place bets on the upcoming 2024 Taiwan elections. He confessed to participating in bets on both the presidential and legislative outcomes, resulting in a deferred prosecution and a monetary fine due to his clean criminal record.
Polymarket, a well-known betting platform within the cryptocurrency sphere, offers users the opportunity to wager on a variety of topics ranging from significant financial decisions to more trivial matters. According to the Shilin District Prosecutor’s Office, Chen placed bets totaling around 472 USD Coin (USDC) on Polymarket. He predicted that Ko Wen-Je of the Taiwan People’s Party would emerge victorious in the presidential election, and also wagered 60 USDC on the Democratic Progressive Party (DPP) winning more legislative seats.
An in-depth investigation uncovered that Chen’s actions violated Taiwan’s laws concerning online gambling on election results. His bets, made between December 12 and 17 of the previous year, were deemed violations under the “Public Servants Recall Act,” which prohibits gambling on election outcomes involving key public officials.
Due to his clean criminal record, Chen acknowledged his offense and received deferred prosecution for a year. Additionally, he was fined 30,000 yuan (approximately $4,000) for his actions.
Taiwan has been actively cracking down on individuals using cryptocurrency betting platforms like Polymarket to gamble on election results. In 2023, multiple individuals were summoned for their alleged involvement in similar activities. Authorities have stressed that such actions are illegal and could lead to severe penalties, such as imprisonment, detention, or substantial fines.
In efforts to combat fraud and money laundering risks, Taiwan’s Ministry of Justice has put forth strict amendments to its anti-money laundering laws targeting cryptocurrency firms. These proposed regulations require both domestic and international crypto companies operating in Taiwan to register for anti-money laundering compliance. Failure to comply could result in imprisonment for up to two years and fines reaching up to $1.5 million.
The amendments also include stringent registration criteria and penalties extending to third-party payment accounts and virtual asset accounts. If approved, these changes would escalate violations to criminal offenses, potentially resulting in prison sentences and substantial fines for offenders.
Furthermore, recent collaborations between Binance and Taiwan’s Ministry of Justice Investigation Bureau, along with the Taipei District Prosecutors Office, have led to the investigation of a significant cryptocurrency-related money laundering case involving nearly NT$200 million ($6 million). Nine suspects have been indicted on charges including aggravated fraud, money laundering, and violation of organized crime prevention regulations.
Taiwan is steadfast in advancing its regulation of the crypto industry, with the Financial Supervisory Commission (FSC) announcing plans to introduce new laws for digital assets by September 2024. The country is taking proactive measures to ensure compliance and combat illicit activities within the cryptocurrency space.
