Bitbank Warns Polymarket Users Over Account Suspensions

Japanese cryptocurrency exchange Bitbank has issued a warning to customers who interact with prediction market platforms such as Polymarket, stating that accounts connected to such services could face suspension under the company’s compliance policies.

The notice reflects growing caution around prediction markets in Japan, where gambling laws remain strict and regulators have yet to establish a clear framework for cryptocurrency-based event trading. Bitbank said that users who transfer funds to or from prediction market services may lose access to their accounts if those activities are detected.

The exchange explained that prediction market platforms allow participants to trade on the outcomes of future events, including elections, sporting contests, and other real-world developments using digital assets. Although many of these services operate outside Japan, Bitbank stated that accessing them from within the country for financial gain could potentially fall under gambling-related offenses.

Exchange Details Potential Consequences

According to Bitbank’s notice, accounts linked to prediction market services may be subject to a complete suspension rather than limited restrictions. Customers affected by such measures could lose access to account logins, cryptocurrency deposits and withdrawals, Japanese yen withdrawals, and all trading functions.

The exchange stated: “Therefore, if we detect any deposits or withdrawals related to prediction market services or services suspected of being related, we may suspend your account.”

Bitbank further noted: “Furthermore, we will not be held liable for any damages incurred by the customer as a result of the account suspension measures.”

The company said users who believe their accounts were restricted by mistake can submit an inquiry through its support channels so the matter can be reviewed.

The warning stops short of citing any specific directive from Japanese regulators. However, the exchange emphasized that it aims to maintain a safe trading environment by complying with applicable laws and guidelines. It also urged customers to be cautious when using external services that could expose them to legal or criminal risks.

Gambling Concerns Drive Compliance Approach

Japan maintains some of the strictest gambling rules among major economies. Under the country’s legal framework, most forms of wagering remain prohibited except for a limited number of government-authorized activities, including certain public racing events and lotteries.

Prediction markets have attracted attention because they allow users to stake cryptocurrency on uncertain future outcomes. Some legal observers argue that such activity may fall within existing gambling definitions when financial gain is involved.

Bitbank’s position reflects those concerns. The exchange indicated that even when a platform operates overseas, participation from Japan may still raise compliance issues.

Polymarket itself currently lists Japan among jurisdictions subject to access restrictions. The platform blocks users from the country through its frontend and prohibits attempts to bypass those restrictions. Despite this, reports have indicated that the company has explored opportunities for eventual entry into the Japanese market, although any such move would likely require regulatory approval.

Prediction Markets Face Global Scrutiny

The Bitbank announcement arrives as prediction market platforms encounter increasing regulatory attention in multiple jurisdictions.

According to Bitcoin News, in South Korea, authorities have reportedly launched an investigation into domestic users of Polymarket to determine whether participation on the platform violates local gambling laws. Legal experts cited in reports have suggested that several elements commonly associated with gambling offenses may be present, although no clear precedent involving Polymarket users currently exists in the country.

The United States has also seen heightened scrutiny of prediction markets. Federal authorities recently pursued a case involving Army soldier Gannon Van Dyke, who is accused of using classified military information to place profitable trades on Polymarket. Prosecutors allege he turned roughly $33,000 into more than $410,000 through event-based contracts before attempting to conceal the activity.

Separately, U.S. regulators have continued stressing that fraud, market manipulation, and insider trading rules apply to prediction market platforms operating under their jurisdiction.

Questions have also emerged around the marketing practices of major prediction market operators. Recent reporting alleged that Polymarket paid hundreds of thousands of dollars to social media influencers over a fourteen-month period, with some promotional content reportedly lacking disclosures regarding paid relationships.