Polymarket returns to U.S. with $112M QCX acquisition, enabling regulated trading after DOJ and CFTC close probes.
Polymarket, a cryptocurrency wagering platform, is reentering the United States in response to the initial regulatory approvals. It has finalized the acquisition of QCEX, a derivatives exchange that the CFTC regulates to facilitate its reentry into the United States.
Polymarket acquires the QCEX Exchange to facilitate its return to the United States
According to a Bloomberg report, the company has agreed with authorities to reestablish its operations in the United States after nearly three years. Polymarket has acquired QCEX, a CFTC-regulated derivatives exchange, for $112 million to guarantee regulatory compliance.
Virtual private networks (VPNs) are unnecessary for US residents to access crypto-betting platforms, provided there are no regulatory obstacles. Shayne Coplan, CEO of Polymarket, verified the acquisition, stating that it “clears the way” for the service to reopen its doors to US traders.
The QCEX exchange, which is relatively unknown, submitted an application for CFTC licensing in 2022; however, regulatory approval was not obtained until July 9. Coplan observes that Polymarket will have the legal foundation to operate in the United States by possessing a designated contract maker (DCM) and a derivatives clearing organization (DCO).
“This acquisition isn’t just about a license,” said Coplan. “It’s Polymarket’s homecoming, returning stronger and ready to serve American users once again.”
The action was taken just one week after the CFTC and the US DOJ concluded their investigation into its potential violations of a settlement with US authorities. Polymarket was charged by the CFTC in 2022 for unlawfully operating an unregistered derivatives trading platform. The platform consented to restrict US users’ access to its platform as part of its settlement.
Their return to the United States coincides with authorities’ evolving perspective on the cryptocurrency sector. The GENIUS Act and other pro-crypto regulations are causing the SEC and the CFTC to become more favorable toward the industry.
Polymarket reportedly pursued unicorn status last month, with a $1 billion valuation and intentions to raise $200 million. The crypto-betting platform is enticing thousands of bettors to place bets on the future prices of crypto assets and the approval of exchange-traded funds (ETFs).
