- A Taiwanese man has been prosecuted for betting on election outcomes via the blockchain-based gambling site Polymarket
- The pseudonymous nature of blockchain gambling has not protected the man, highlighting improved enforcement capabilities
- The case has underscored Taiwan’s stringent anti-gambling laws, even for digital and decentralized platforms
A Taiwanese man was recently prosecuted for betting on the outcomes of the recent presidential election and legislative seats via the blockchain-based gambling website, Polymarket. The pseudonymous nature of blockchain gambling wasn’t enough to save the man, identified only as Chen, and acts as a reminder that authorities are much better equipped to deal with such enforcement than in years gone by. The case also underscores the country’s stringent laws against gambling, even in the digital and decentralized sphere.
Chen Bet on Election Outcome
Before the presidential election, which took place in January, Chen used the USDC stablecoin to place his bets on the outcome, contravening gambling laws. Specifically, he wagered 472.17 USDC on Ke Wenzhe’s presidential bid and 60.19 USDC on the Democratic Progressive Party securing a majority of legislative seats.
Despite the virtual nature of his bets, Chen’s actions did not escape the scrutiny of Taiwanese law enforcement, and the Shilin District Prosecutor’s Office charged him with violations under the “Election and Recall Act for the President and Vice President,” which prohibits gambling on election outcomes. Additionally, Chen’s actions fell foul of the “Act Governing the Punishment of Gambling” which includes provisions against gambling on the Internet.
The investigation revealed that Chen placed his bets between December 12 and 17, with the prosecutor’s office indicting him for “using the internet to gamble on the results of presidential and vice-presidential elections,” thus categorizing his offense as “gambling with property.”
Chen Deferred Prosecution
However, the case also highlighted Taiwan’s judicial leniency in first-time offenses. Given Chen’s admission of guilt and his previously clean record, prosecutors offered him deferred prosecution. This legal concession requires Chen to pay 30,000 yuan ($926) into the public treasury, with the deferred prosecution period set for one year.
Taiwan’s gambling laws are comprehensive and strictly enforced. Traditional forms of gambling are illegal, and this extends to digital and blockchain-based platforms. Despite the decentralized nature of blockchain technology, which often operates beyond conventional regulatory frameworks, Taiwanese law classifies such activities as illegal gambling.
