Bitbank suspends accounts over Polymarket transactions amid gambling law concerns
In brief
- Bitbank issued enforcement notice warning users of account suspensions for Polymarket-linked transactions
- Japan's gambling laws cited as basis for the enforcement action against prediction market activity
- Suspended accounts lose access to logins, deposits, withdrawals, and crypto trading
- Polymarket already restricts access from Japan and 34 other jurisdictions
- Japan has not issued formal regulatory guidance on prediction markets
Bitbank's enforcement notice
Bitbank said it may restrict accounts making deposits or withdrawals connected to prediction market services. A Bitbank spokesperson stated that "under Japanese law, participation in certain prediction market services may involve legal and regulatory risks for residents of Japan."
Users whose accounts are suspended would lose access to a wide range of services, including account logins, deposits, withdrawals, and crypto trading. The exchange also noted it would not be liable for any damages incurred by customers as a result of the suspension measures.
Regulatory ambiguity and global pressure
Bitbank did not cite any specific regulatory action or government directive behind the warning. Japan has not issued formal guidance specifically on prediction markets, leaving exchanges to interpret how gambling laws apply to platforms like Polymarket.
The move reflects broader pressure on prediction markets globally. Regulators in multiple jurisdictions are taking action against Polymarket and other platforms over gambling concerns. Notably, Polymarket currently lists Japan among 35 restricted jurisdictions in its access policy, even though the company signaled in May that it was exploring expansion in Japan.
