Ukraine banned Polymarket and there’s no legal way for it to come back

Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Ukraine banned Polymarket and there’s no legal way for it to come back Polymarket and similar platforms are considered unlicensed gambling operators, leading to blocked access. By Francisco Rodrigues | Edited by Aoyon Ashraf Jan 24, 2026, 3:40 p.m. Make us preferred on Google (Glib Albovsky/Unsplash/Modified by CoinDesk) What to know : Ukraine has no legal framework for Web3 prediction markets, and current legislation provides no recognition for such platforms. Polymarket and similar platforms are considered unlicensed gambling operators, leading to blocked access. Legal changes are unlikely in the near future, as Parliamentary revisions to gambling definitions are extremely improbable during wartime, leaving prediction markets in a legal deadlock. There is no legal way for Web3 prediction markets to operate in Ukraine under current laws, according to a senior official involved in shaping the country’s digital economy policy. In comments shared with CoinDesk days after Ukraine blocked access to Polymarket and nearly 200 gambling-related websites Dmitry Nikolaievskyi, chief legal officer at the Project Office for the Development of Ukraine's Digital Economy at the Ministry of Digital Transformation, revealed a deadlock for Web3 prediction markets in the country. STORY CONTINUES BELOW Don't miss another story. Subscribe to the State of Crypto Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . Nikolaievskyi said that while the decision to ban Polymarket followed existing legal procedures, the underlying problem is that the country’s legal framework doesn’t recognize prediction markets at all. “Ukrainian legislation does not contain such a concept as ‘prediction markets,’” Nikolaievskyi said. He added that a long-delayed law “On Virtual Assets” is necessary for companies, not just individuals, to operate legally using crypto. Until that law passes, platforms that use cryptocurrency to facilitate betting on event outcomes, including Polymarket, are effectively unlicensed gambling operators in the eyes of the state. “This really means that there is currently no legal way for Web3 prediction markets to operate in Ukraine until the legislation changes,” he said. Polymarket, which lets users bet on the outcome of events ranging from elections to geopolitical events, is currently restricted in more than 30 countries. Portugal is the latest in a growing list of countries cracking down on it. Earlier, Ukraine’s National Commission for State Regulation of Electronic Communications (NKEK) issued a directive requiring internet service providers to block access to the prediction market. 'War-related' bets The order followed a recommendation from PlayCity, Ukraine’s state gambling regulator, which cited Polymarket’s lack of a gambling license and the nature of its markets, which include bets tied to the Russia-Ukraine war. While Nikolaievskyi insisted that the ban was based on existing legal grounds and carried out through proper channels, he acknowledged that war-related markets may have prompted regulators to act more quickly. “We cannot rule out the fact that the presence of “war-related” bets on the platform may have accelerated the decision to block it, drawing the regulator's attention to it,” he said. Local media outlet AIN previously reported that more than $270 million in war-linked bets had been placed on Polymarket, including markets predicting the capture of territories. The situation leaves other prediction markets like Kalshi and PredictIt operating in a gray zone. Though they were not included in the initial list of blocked sites, Nikolaievskyi noted that PlayCity allows anyone to file formal complaints about platforms suspected of violating gambling laws. That means a single citizen report could prompt similar enforcement actions against other prediction markets, even if they’ve stayed under the radar so far. There may still be a way Still, the ban is seemingly aimed squarely at the platforms, not users. According to Nikolaievskyi, there is currently no legal effort underway to pursue individuals who interact with platforms like Polymarket using virtual private networks (VPNs) or by interacting directly with smart contracts. “I am not aware of any attempts by the state to prohibit its own citizens from interacting with decentralized protocols,” he said, nor has he seen examples of users being held responsible for bypassing the blocks. Legal change isn’t likely to come soon. Nikolaievskyi said any revisions to Ukraine’s definition of gambling would have to be passed by Parliament and that “the likelihood of its revision is extremely low,” especially during wartime. Ukraine Polymarket Exclusive More For You KuCoin Hits Record Market Share as 2025 Volumes Outpace Crypto Market By CoinDesk Research Dec 22, 2025 Commissioned by KuCoin KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market. What to know : KuCoin recorded over $1.25 trillion in total trading volume in 2025 , equivalent to an average of roughly $114 billion per month , marking its strongest year on record. This performance translated into an all-time high share of centralised exchange volume , as KuCoin’s activity expanded faster than aggregate CEX volumes , which slowed during periods of lower market volatility. Spot and derivatives volumes were evenly split , each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line. Altcoins accounted for the majority of trading activity , reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover. Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity , indicating structurally higher user engagement rather than short-lived volume spikes. View Full Report More For You Days of our market structure bills: State of Crypto By Nikhilesh De | Edited by Aoyon Ashraf 1 hour ago We have a new draft and fresh questions. Read full story Latest Crypto News Days of our market structure bills: State of Crypto 1 hour ago Here is why investors are snubbing Michael Saylor’s 10% dividend offer in Europe 2 hours ago R3 bets on Solana to bring institutional yield onchain 3 hours ago Ethereum Foundation makes post quantum security a top priority as new team forms 9 hours ago Bitcoin’s weakness versus gold and equities puts quantum computing fears back in focus 10 hours ago Senate Agriculture's crypto market structure draft peppered with Democrat pitches 16 hours ago Top Stories Binance plans to bring back tokenized stock trading after 2021 retreat 21 hours ago FBI arrests ex-Olympian drug 'kingpin' who allegedly used crypto to move proceeds 17 hours ago Kevin O'Leary says power is now more valuable than bitcoin 19 hours ago Stablecoins moved $35 trillion last year but only 1% of it was for 'real world' payments 17 hours ago Buying ether and Bitmine Immersion ahead of weekend a good bet: Standard Chartered Jan 23, 2026