Bitbank declares war on Polymarket: account blocking for transactions with prediction markets
Japanese crypto exchange Bitbank has introduced strict measures against users found to be involved in transactions with Polymarket and similar prediction market platforms. According to a statement published on June 15, any activity related to obtaining financial gain through such services may be considered a violation of local gambling laws. This is not an isolated warning but part of a consistent policy of tightening compliance controls in the Japanese crypto industry.
What exactly triggers a block?
Bitbank has clearly outlined the triggers: depositing or withdrawing funds from platforms that are either prediction markets or suspected of being connected to them. At risk are Polymarket and any other services that allow trading on event outcomes, from elections to sports matches. The exchange emphasizes that these platforms may be registered outside Japan, but accessing them from the country for profit carries "legal risks."
What exactly will be disabled?
The consequences for violators are extremely severe. After an account is suspended, the user completely loses access to:
- logging into the account;
- depositing and withdrawing crypto assets;
- withdrawing Japanese yen (JPY);
- trading any crypto assets.
Notably, Bitbank disclaims any responsibility for potential financial losses clients may incur as a result of such blocks. This sends a signal to the market: regulatory risks fall solely on the user.
Why this matters: context and global trends
Although Polymarket already lists Japan as a jurisdiction with restricted access to its user interface in its documentation, API access remains open. It is likely this loophole that Bitbank is trying to close.
It is important to understand that this is not an isolated case. In early 2026, the Portuguese regulator demanded that Polymarket cease operations due to bets on the presidential election totaling over €103 million. In the spring, Spain temporarily blocked the platform for lacking a gambling license, and Indonesia followed suit. Thus, Japan is joining a global wave of crackdowns on decentralized prediction markets.
Expert opinion: Bitbank's actions are a preemptive strike. Japan has historically been known for strict cryptocurrency regulation, and the exchange clearly does not want to risk its license over the gray area of prediction markets. For traders, this is a clear marker: attempting to bypass Polymarket's geoblock through Japanese exchanges now carries the risk of losing all funds in the account. Prediction markets, despite their innovativeness, are increasingly facing resistance from traditional financial systems, and this trend will only intensify.