Regulatory Developments: Ukraine Blocks Polymarket, US Seeks to Protect Blockchain Developers

Ukraine Bans Polymarket as Gambling Service

Ukrainian authorities have blocked access to the prediction platform Polymarket nationwide. On December 10, 2025, the National Commission for Electronic Communications Regulation ruled that the platform should be classified as an unlicensed gambling service ^[1]. Internet providers are now required to block online services that organize or enable gambling without a valid license ^[1].

The domain polymarket.com has been added to the state register of blocked websites, preventing Ukrainian users from accessing the platform ^[1]. Polymarket enables trading in contracts on real-world events, with prices reflecting market-expected probabilities. The platform's offerings include sporting events as well as political and economic developments ^[1].

Ukrainian authorities view betting on geopolitical events related to Russia's war of aggression as particularly problematic ^[1]. Ukraine thus joins a list of more than thirty countries where Polymarket is restricted, including Germany, France, the United Kingdom, Italy, and Australia ^[1]. Regulatory interventions at the state level are also increasing in the United States ^[1].

Additionally, the platform faces criticism over possible insider trading. One case recently attracted attention when a user placed a bet just hours before US action against Venezuelan President Nicolás Maduro and won $430,000 as a result ^[1].

US Senators Introduce Legislation to Protect Blockchain Developers

On January 12, 2026, US Senators Cynthia Lummis and Ron Wyden introduced the "Blockchain Regulatory Certainty Act" ^[3]. The bipartisan legislative initiative aims to create clear legal frameworks for developers and providers of blockchain software and protect them from being classified as "money transmitters" if they do not exercise control over user funds ^[3].

Until now, developers and providers of blockchain applications who merely write code and maintain open-source infrastructure have often been treated like financial intermediaries and required to follow the same rules as exchanges and brokers ^[3]. "It's time to stop treating software developers like banks just because they write code," Senator Lummis stated ^[3].

The bill provides exemptions for developers and providers who have no control over user funds—that is, who possess neither the right nor the unilateral authority to control, initiate, or execute transactions with digital assets without third-party consent ^[3]. Specifically, persons or companies may not be classified as payment service providers if they merely publish or maintain software for distributed ledgers, provide hardware or software for self-custody, or deliver infrastructure support for decentralized open-source networks ^[3].

However, the bill clarifies that protection applies only to the specified developer activities. Laws combating money laundering and terrorist financing remain fully applicable ^[3]. Against the backdrop of criminal proceedings against Tornado Cash and Samourai Wallet, the bill demonstrates the political will to no longer equate code with criminal conduct across the board ^[3].

Firefish Receives MiCA License for Bitcoin-Backed Loans

The Bitcoin lending platform Firefish has officially held a MiCA license since January 2, 2026, making it one of the first Bitcoin-native providers in Europe to operate under the new regulatory framework ^[2]. CEO and Co-Founder Martin Matejka offered a sober assessment of the licensing: "I don't see MiCA as progress for Bitcoin itself, but primarily as a signal of greater regulatory clarity in the European market. While this clarity provides formal planning certainty, it comes at a noticeable cost to the speed and openness with which innovations can emerge" ^[2].

Despite regulatory challenges, Firefish recorded strong growth in 2025. According to company figures, over 3,600 BTC have been deposited as collateral to date, representing a loan volume of approximately $145 million ^[2]. The platform now counts more than 25,000 users from 69 countries ^[2].

Particularly noteworthy is the performance during the recent market downturn. Despite a Bitcoin price decline of around 35 percent, the company reports that there has not been a single forced liquidation to date ^[2]. This was made possible by the conservatively chosen loan-to-value ratio of 50 percent ^[2]. Lenders have received over $12.5 million in interest payments so far ^[2].