Taiwan’s Crypto Clampdown: Multiple Arrests Over Illegal Election Betting Site

The Taiwanese authorities have recently taken action against an unprecedented surge in online betting related to the country’s presidential election.

Despite blocking a U.S.-based website used for placing bets, arrests continue to mount, signaling a deep-rooted challenge in controlling digital gambling activities.

According to Taiwan’s domain name registrar, the website was restricted on December 22 in collaboration with the Criminal Investigation Bureau (CIB). The CIB clarified that the blockade is effective only within Taiwan, leaving the site accessible to users abroad.

This digital clampdown came amid growing concerns over the misuse of the decentralized prediction marketplace Polymarket for election betting. Polymarket

operates by allowing users to purchase “yes” or “no” bets on the potential winners of the election.

These bets, termed as “shares,” fluctuate in value based on market dynamics, with correct predictions at the end of the betting period reaching a value of one U.S. dollar, while incorrect ones become worthless.

Continuous Crackdown: Arrests and Seizures

The issue escalated as Miaoli County police reported the arrest of 11 individuals for their involvement in election betting through the said website. During these arrests, around $8,000 in cryptocurrency was seized, as per reports from CNA. 

This followed an earlier police operation in mid-December that resulted in 17 additional arrests, all linked to betting on the presidential race via the same online platform. In Taiwan, individuals found guilty of profiting from election bets face severe penalties, including up to five years of imprisonment and fines reaching NT$500,000.

The attraction towards such betting on Polymarket was notable. Nearly $700,000 has been wagered on Taiwan’s election through this platform. The site permits users to speculate on the success of the three main candidates, with the current odds reflected in the pricing of the bets. 

For instance, a bet on Democratic Progressive Party candidate Lai Ching-te was the most costly, suggesting a higher probability of his victory. In contrast, bets on Taiwan People’s Party candidate Ko Wen-je and Kuomintang candidate Hou Yu-ih were cheaper, indicating lower expected chances of their win.

The recent developments in Taiwan highlight the complex interplay between the digital world and legal frameworks. The accessibility of decentralized platforms like Polymarket, combined with the ease of using cryptocurrencies, has opened new avenues for illicit activities that are challenging to regulate. 

The Taiwanese authorities’ response to this issue, balancing between technological advancement and legal enforcement, remains a critical aspect to observe as digital platforms continue to evolve and permeate various aspects of life.