Taiwan Issues Warning on Crypto Betting Ahead of Presidential Election

An alert was issued in response to stories of Taiwanese citizens using the betting platform Polymarket to wager on election outcomes. The government has made clear the legal dangers associated with these kinds of operations, highlighting the possibility of consequences like jail time, incarceration, and hefty fines.

Some Taiwanese nationals have reportedly started betting via cryptocurrency on the next presidential election on the website Polymarket. This trend has emerged despite the widespread belief held by certain users that betting on-chain transactions does not violate local regulations. However, government representatives have made it clear that there could be serious legal ramifications for any kind of election gambling.

Election-related crypto betting activities are governed by Article 88-1 of the Election legislation in Taiwanese legislation. Penalties for breaking this law include up to NT$100,000 ($3,199 US dollars) in fines, criminal detention, or six months in prison. Some voters, apparently unaffected by the possible repercussions, have decided to take a chance on the outcome of the election despite the dangers.

It is notable that Polymarket, the betting platform at the heart of this dispute, has its headquarters in New York. The Commodities Futures Trading Commission (CFTC) asserted that the platform had been running an unregistered facility for trading event contracts since June 2020. This is not the only regulatory difficulty the company has faced. The latest actions in Taiwan reflect a wider range of regulatory obstacles that Polymarket must contend with.

Taiwan’s central bank is working to keep the economy stable as the country gets ready for the next election. Among them is the decision to maintain the benchmark interest rate at 1.875%, which is in line with what analysts had predicted. The bank’s move fits into a larger plan to promote steady financial and economic expansion during election season.

The bank recently changed its estimate for the year’s economic growth to 1.4% after keeping rates unchanged since March. The bank’s endeavor to stabilize the economy in the face of possible turbulence resulting from the election is reflected in this cautious stance. In addition, the bank has released a more bullish forecast for the upcoming year, predicting 3.12% growth, suggesting that the post-election economy will be bright.

This news raises significant concerns about the use of cryptocurrencies in elections, even in light of the recent advisory prohibiting election betting. The issue of digital currencies’ possible use in election-related activities is probably going to get bigger as they become more widely accepted. Global regulators will have to think about how to handle these new difficulties.