Overview
- Spain's gambling regulator opened formal disciplinary proceedings and ordered internet service providers to block Polymarket and Kalshi, with the precautionary measures published on May 26 and expected to last about three to four months while investigations proceed.
- Indonesia's Ministry of Communication and Digital Affairs confirmed it blocked Polymarket after a market on President Prabowo Subianto's early exit drew trading and public attention, saying the service amounts to illegal online gambling under national law.
- Regulators cited the same core failings across jurisdictions: the platforms lack local gambling licences, do not reliably verify user identity or age, and do not provide self-exclusion tools or robust anti-money-laundering controls.
- The actions matter for market functioning because Polymarket and Kalshi together handled roughly $9.7 billion in recent 30-day trading volume, and national blocks can sharply reduce liquidity and the accuracy of market prices.
- The crackdown adds to parallel U.S. scrutiny where Kalshi operates under CFTC approval and Congress and regulators are probing insider trading risks and KYC practices, leaving the firms to choose between costly licensing and compliance upgrades or legal challenges.