Japan’s Bitbank warns customers: transfers linked to Polymarket-style prediction markets could trigger account suspensions
Japan’s crypto exchange Bitbank has warned customers that deposits to or withdrawals from prediction-market platforms — including services like Polymarket — may lead to account restrictions if the activity is deemed to fall under Japanese gambling laws.
What Bitbank said
- The exchange’s notice warns that using prediction markets — platforms that let users trade on the outcomes of future events (elections, sports, geopolitical developments) with crypto — can carry legal risk when accessed from Japan.
- If Bitbank identifies transfers to or from services it considers potentially “gambling” platforms, affected accounts may be suspended. Suspensions could block logins, crypto deposits/withdrawals, yen withdrawals and trading functions.
- Bitbank also said it will not be liable for losses resulting from such suspensions. Users who believe a restriction was applied in error are asked to contact support for review.
Why this matters
Prediction markets, many of which operate overseas, have become a focus for regulators worldwide. Platforms that enable event-based wagers raise questions about gambling rules, market manipulation and insider trading — issues that can prompt exchange compliance actions like Bitbank’s.
Regulatory and legal developments to watch
- Polymarket: In May Polymarket clarified that mandatory identity verification would not be rolled out across its main site; KYC was limited to a small beta product, the company said. The platform continues to list Japan among jurisdictions subject to frontend restrictions, and several other countries face limits or close-only trading due to compliance obligations.
- South Korea: The Gangwon Provincial Police Agency opened an investigation into domestic Polymarket users to determine whether participation violated local gambling laws. An attorney representing some users said the legal elements of a gambling offense appear present, though no domestic precedent for prosecuting Polymarket users exists yet.
- United States: Federal authorities have pursued cases tied to prediction-market activity. A Manhattan court scheduled a Dec. 7 trial for Army soldier Gannon Van Dyke, accused of using classified information to place profitable bets on Polymarket — allegedly turning roughly $33,000 into more than $410,000. Separately, the Commodity Futures Trading Commission has reiterated that fraud, manipulation and insider-trading rules apply to prediction markets under its jurisdiction.
- Public scrutiny: A POLITICO investigation reported that Polymarket paid at least $350,000 to social-media influencers over 14 months, with many promotional posts reportedly lacking disclosures about paid relationships.
Takeaway for users
Bitbank’s notice is a reminder that exchanges are increasingly policing flows to platforms that may be considered gambling or otherwise non-compliant with local rules. Japanese users should be mindful of where funds are sent and review any account activity flags carefully — and contact Bitbank support if they believe a restriction is mistaken.
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