Japan’s Bitbank flags accounts that touch Polymarket-style prediction markets, warns of suspensions
Japanese crypto exchange Bitbank has issued a formal warning to customers: accounts that deposit to or withdraw from prediction market platforms — including services like Polymarket — risk suspension if those platforms are deemed to fall under Japan’s gambling laws.
In a notice, Bitbank explained that prediction markets let users trade on the outcomes of real-world events — from elections and sports to other future developments — using cryptocurrencies. Although many such platforms operate overseas, the exchange said accessing and using them from Japan “for financial gain” could potentially constitute a gambling-related offense under domestic law.
What Bitbank will do
- Bitbank said it may suspend accounts found to have transferred funds to prediction market services or related platforms.
- Suspended users could lose access to account logins, cryptocurrency deposits and withdrawals, yen withdrawals, and trading functions.
- The exchange added it will not be responsible for any losses resulting from such suspension measures.
- Users who believe an account was restricted in error were directed to contact Bitbank support for a review.
Global regulatory heat on prediction markets
Bitbank’s move comes amid growing global scrutiny of prediction markets. Polymarket has previously restricted access in several jurisdictions — including listing Japan among locations subject to frontend restrictions — and limits or close-only trading in others to satisfy regulatory obligations.
Last May, Polymarket said it would not roll out mandatory identity verification across its main site. Josh Stevens, Polymarket’s vice president of engineering, clarified that KYC checks applied only to a limited beta product and would not become a requirement for existing users on polymarket.com.
Regulators and law enforcement in multiple countries are taking action:
- South Korea: The Gangwon Provincial Police Agency has opened an investigation into domestic Polymarket users after a national police request, examining whether participation violated local gambling laws. Attorney Ahn Chang-bo, representing some users, told Chosun Biz that the legal elements for a gambling offense appear present, though there’s no domestic precedent for punishments tied to Polymarket.
- United States: Federal authorities have pursued several cases linked to prediction-market activity. A Manhattan court has scheduled a Dec. 7 trial for Army soldier Gannon Van Dyke, whom prosecutors accuse of using classified military intelligence to place lucrative wagers on Polymarket — allegedly turning roughly $33,000 into over $410,000 before attempting to hide the activity. Separately, the Commodity Futures Trading Commission continues to stress that its rules against fraud, manipulation, and insider trading apply to prediction markets operating under its jurisdiction.
Other controversies
A POLITICO investigation reported that Polymarket paid at least $350,000 to social media influencers over a 14-month period, with many promotional posts reportedly lacking disclosures about paid relationships — a development that adds to regulatory and reputational pressures on the platform.
What this means for users
Bitbank’s warning underscores how quickly regulatory interpretations can affect on-ramps and services in crypto. Users in Japan should be cautious about funding or interacting with prediction-market sites from exchange accounts, review platform terms, and contact exchanges directly if they face unexpected restrictions. For now, the global regulatory spotlight on these markets looks set to continue.
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