Japanese crypto exchange Bitbank has warned users that accounts linked to prediction market platforms such as Polymarket could face suspension as regulatory scrutiny around event based betting intensifies.
Key Takeaways
- Bitbank warned users that deposits and withdrawals linked to Polymarket and similar prediction market platforms may trigger account suspension.
- Suspended users could lose access to account logins, trading, cryptocurrency transfers, and yen withdrawals.
- The exchange said participation in overseas prediction markets from Japan for financial gain could potentially fall under gambling related regulations.
- The warning comes as authorities in Japan, South Korea, and the United States increase scrutiny of prediction market platforms.
What Happened?
Japanese cryptocurrency exchange Bitbank has issued a warning to customers over the use of prediction market platforms such as Polymarket. The company said accounts found to be sending or receiving funds connected to such services could face suspension under its compliance policies.
The move reflects growing regulatory concerns around prediction markets, which allow users to speculate on the outcomes of future events using cryptocurrency.
Bitbank Warns of Account Suspensions for Prediction Market Transactions
— Cryip (@Cryip_co) June 15, 2026
• Warning: Bitbank may suspend accounts that conduct deposits or withdrawals linked to prediction markets such as Polymarket.
• Impact: Suspended accounts lose login access, crypto deposits/withdrawals,… pic.twitter.com/h2aHF1Uoyi
Bitbank Signals Tougher Enforcement on Prediction Market Activity
In a notice published on its official platform, Bitbank cautioned users that transactions involving prediction market services could lead to restrictions on their accounts. The exchange specifically referenced platforms that enable trading on future events such as elections, sporting events, and other real world outcomes using digital assets.
According to the exchange, many of these services operate from overseas. However, accessing and participating in them from within Japan for the purpose of earning profits may raise concerns under Japanese gambling regulations.
As a result, Bitbank said it may take action if it identifies deposits or withdrawals connected to prediction market platforms or related services.
Users Could Lose Access to Trading and Withdrawals
The exchange outlined strict consequences for users whose accounts become subject to suspension measures.
If Bitbank restricts an account, affected customers may lose access to:
- Account logins
- Cryptocurrency deposits
- Cryptocurrency withdrawals
- Yen withdrawals
- Trading functions
The company also stated that it will not be responsible for any losses incurred as a result of account suspension measures.
Bitbank added that users who believe enforcement action was taken in error can contact the exchange through its support channels and request a review.
Regulatory Pressure on Polymarket Continues to Grow
The warning arrives as Polymarket faces increasing attention from regulators and law enforcement agencies around the world.
The prediction market platform has become one of the largest crypto-based venues for trading on real world events. Users can place trades on outcomes ranging from elections and economic developments to sports competitions and geopolitical events.
Earlier, Polymarket clarified that it was not introducing mandatory identity verification requirements across its primary platform after reports suggested broader compliance measures were being considered. Company representatives stated that identity checks were limited to a separate beta product and would not become a requirement for existing users on the main platform.
Despite that clarification, Polymarket continues to restrict access in several jurisdictions due to regulatory obligations. Japan remains among the regions where access limitations apply.
South Korea and United States Also Increase Scrutiny
Regulatory attention is not limited to Japan.
In South Korea, authorities have reportedly launched an investigation into local users who participated in Polymarket. The inquiry is examining whether activity on the platform may have violated domestic gambling laws. Legal experts cited in local reports noted that while there is currently little legal precedent involving Polymarket users, authorities appear to believe key elements of gambling-related offenses may be present.
Meanwhile, regulators in the United States have also increased oversight of prediction market activity.
Federal prosecutors recently pursued a case involving an Army soldier accused of using classified military information to place profitable wagers on Polymarket. Authorities allege the individual generated substantial gains through event based trades before attempting to conceal the activity.
Separately, the Commodity Futures Trading Commission has continued to emphasize that fraud, market manipulation, and insider trading rules apply to prediction markets operating under its jurisdiction.
Questions have also emerged regarding Polymarket’s promotional practices. A recent POLITICO investigation reported that the platform paid at least $350,000 to social media influencers over a 14 month period, with some promotional posts allegedly lacking proper disclosure of paid relationships.
CoinLaw’s Takeaway
In my experience, this development shows how quickly regulators and crypto exchanges are moving to address gray areas surrounding prediction markets. While platforms like Polymarket have gained popularity for offering new ways to speculate on real world events, exchanges operating in regulated markets cannot ignore local gambling laws. I found Bitbank’s warning significant because it shifts the compliance burden directly onto users, making it clear that participation in certain prediction market activities could carry real consequences for access to crypto services.
