Polymarket Acquires QCEX, Reopening Legal Betting for Americans

With the $112 million acquisition announced on Monday, Americans can once again place legal bets on political events. The CEO of Polymarket, Shayne Coplan, shared the news on X.

“Polymarket has acquired QCEX, which is regulated by the CFTC, and we’re excited to have American traders back,” Coplan stated. He’s been eager to announce this comeback, indicating that the platform is now home again.

In his post, Coplan also mentioned a waitlist for users interested in rejoining the platform. He emphasized that, by owning both DCM and DCO, Polymarket can now cater to all American traders as well as brokerages. “This isn’t just about getting a license. It’s a real homecoming for us, and we’re ready to serve American users stronger than before,” he said.

This is quite a shift from January 2022, when the Commodity Futures Trading Commission (CFTC) had ruled that Polymarket was operating without proper regulatory approval. They noted that the platform was providing off-exchange binary options contracts without the necessary designations.

Per the CFTC, a $1.4 million penalty was imposed, along with a requirement to halt any markets conflicting with the Commodity Exchange Act (CEA). “All derivative markets must comply with legal requirements, no matter the technology,” remarked Vincent McGonagle, the acting director of the executive committee overseeing the release.

The scrutiny began back in June 2020 when Polymarket was accused of running an unauthorized betting site involving real events like elections. Users could wager on questions such as whether Trump would win the 2020 presidential election by trading contracts based on the outcomes.

Now that Polymarket can legally operate in the U.S. through QCEX, they are positioned to provide regulated event bets. This means they can act appropriately as an intermediary between buyers and sellers on their platform.