Taiwanese man charged for betting on Taiwan elections
A Taiwanese man by the name of Chen has been indicted for using the crypto-based predictions platform Polymarket to bet on the 2024 Taiwan elections. The Shilin District Prosecutor’s Office formally charged Chen on June 18, accusing him of gambling on both presidential and legislative results.
Chen reportedly placed bets worth about 472 USDC on Ko Wen-Je from the Taiwan People’s Party winning the presidency, and another 60 USDC on the Democratic Progressive Party (DPP) capturing more government seats. His activities were deemed illegal under Taiwan’s strict rules against betting via the Internet on election outcomes, particularly the President and Vice President Election Recall Act.
Chen confessed to his crimes after being arrested, which led to a deferred prosecution because he had no prior criminal record. He was fined about $4,000 and given a one-year probationary period. Officials have been warning people against using platforms like Polymarket for election betting amid concerns over their legality. Breaching these laws can lead to jail or detainment and large fines.
This case illustrates how much effort Taiwan is putting into cracking down on illegal crypto betting during elections. There were multiple individuals investigated last year for similar. The government is very serious about stopping cryptocurrencies being used unlawfully in relation to betting on election results.
Additionally, other changes are being made within Taiwan when it comes to dealing with crypto-related matters. The Ministry of Justice has recently put forward amendments to anti-money laundering (AML) laws that will specifically focus on cryptocurrencies in order to tackle fraud and money laundering. These proposals would require all domestic as well as international crypto companies operating within Taiwan’s borders to register for AML compliance. If they fail to do so they may face up to two years behind bars alongside fines going up to $1.5m.
Also there have been some interesting legal cases involving digital currencies over recent years. For example, Binance was working alongside Taiwan’s Ministry of Justice Investigation Bureau plus Taipei District Prosecutors Office during what turned out be a huge money-laundering case involving about $6m. Nine individuals were indicted for crimes including fraud, money laundering and fraud among others.
Polymarket has previously faced several regulatory issues. In 2022, Polymarket was fined $1.4m by the CFTC (Commodity Futures Trading Commission) in the US because it did not follow its rules and regulations. This setback did not stop the platform from growing. Last month Polymarket received a $70m investment led by Ethereum co-founder Vitalik Buterin and Peter Thiel’s Founders Fund.
Looking for your next crypto casino? Check out Bitcasino, Mega Dice or FortuneJack!
