Japanese crypto exchange Bitbank has warned its users that transactions tied to prediction market platform Polymarket could result in account suspensions. The exchange pointed to Japan's gambling laws as the reason for the warning. The move signals growing regulatory scrutiny over crypto-based betting.
What Bitbank told users
In an official notice, Bitbank said any transfers or withdrawals linked to Polymarket may be flagged. Users whose accounts are flagged could see their accounts suspended. The warning didn't specify a timeline for enforcement, but the exchange said it's effective immediately.
Why Japan's gambling laws matter
Japan has strict anti-gambling laws. While crypto trading is legal, prediction markets like Polymarket fall into a gray area that regulators view as gambling. Bitbank's warning suggests the exchange is proactively aligning with the country's legal framework, even if the specific rules around crypto-based prediction markets haven't been fully spelled out.
For Bitbank customers who use Polymarket, the warning means they could lose access to their funds. The exchange advises users to avoid any transactions that could be linked to the platform. How Bitbank will detect such transactions — and whether users can appeal a suspension — remains unclear. The exchange hasn't provided further details on the process.
Bitbank's notice didn't mention whether users who stop using Polymarket will be safe, or if past transactions could trigger action. The warning leaves several questions open, and customers with exposure to the platform may want to reconsider their next move.
