Spain Blocks Polymarket and Kalshi Over Gambling Law Violations

Key Facts

In a move reflecting growing regulatory pressure on the crypto sector in Europe, Spanish authorities have blocked prediction market platforms Polymarket and Kalshi. According to reports, this decision stems from concerns regarding unlicensed gambling activities, as authorities maintain these platforms operate outside the national legal framework. The restriction is part of a broader crackdown targeting prediction markets that lack the necessary licenses to conduct such financial and betting activities.

This action follows similar moves in France, where Bloomberg reports that the National Gaming Authority (ANJ) is also considering a ban on Polymarket after it recorded record trading volumes exceeding $1 billion during the U.S. elections. In comparison to other platforms, Kalshi previously faced legal battles in the United States with the CFTC before securing a court ruling to operate, highlighting sharp regulatory disparities across global markets per market data.

Traders should monitor how these restrictions impact liquidity on decentralized platforms, especially with the Eurozone CPI data release scheduled for May 20, 2026, which may increase volatility in linked assets. Additionally, Governor Bailey's speech on the same day will play a role in defining risk appetite in European markets, potentially affecting trading volumes on alternative prediction platforms still operating in the region.

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