Indonesia's government has blocked Polymarket for operating as an illegal gambling platform, particularly over bets on presidential resignation.
The Indonesian government has taken action against the Polymarket platform, citing concerns that it operates similarly to an online gambling site.
This ban comes in response to bets placed on President Prabowo Subianto potentially resigning before his term concludes in 2029, with one market seeing over $46,000 in trades on this outcome. The Ministry of Communication and Information Technology reiterated that all forms of online gambling are illegal in Indonesia.
“Polymarket’s activities involve betting and speculation on uncertain outcomes. This violates Indonesian laws,” stated Alexander Sabar, a representative from the ministry.
The ministry's decision is part of a broader effort to ensure the safety of young people and users within the country's digital landscape.
Indonesia is joining a growing number of nations that categorize prediction markets as gambling. Previously, India had also restricted access to Polymarket, which is already unavailable in over 30 regions worldwide.
While supporters of Polymarket argue that it serves as a means to assess public opinion, regulators remain wary of potential market manipulation and insider trading. In response to regulatory challenges, the Polymarket team is looking to obtain official licenses to operate in various countries, including Japan.
Additionally, it was reported that Polymarket experienced a security breach on May 22, with analysts estimating losses at approximately $700,000 due to a compromised private key.
