Japanese crypto exchange Bitbank has warned its customers that transactions linked to Polymarket could lead to account suspensions. The exchange cited Japan's gambling laws as the reason for the crackdown. The move signals growing regulatory scrutiny on prediction markets in the country.
What Bitbank told users
Bitbank issued a notice to its users stating that any deposits, withdrawals, or trading activity connected to Polymarket may result in account restrictions or suspension. The exchange pointed to Japan's strict gambling regulations, which prohibit most forms of online betting. The warning applies to both past and future transactions, though the exchange hasn't detailed how far back it will look.
Why Polymarket is in the crosshairs
Polymarket is a decentralized prediction market platform where users bet on outcomes of events — from election results to sports scores. Japanese law treats such platforms as illegal gambling if they involve real money. This isn't the first time a Japanese exchange has taken action against prediction markets. In 2025, another local exchange quietly blocked withdrawals to similar platforms. Bitbank's public warning, however, is more direct.
What this means for users
Users who have engaged with Polymarket should expect potential account freezes. The exchange may also report suspicious activity to regulators. The warning is a reminder that Japanese crypto firms must comply with local gambling laws, even when the platform in question operates outside the country. For now, affected users have no clear timeline to move funds before any action is taken.
The broader picture
Japan has been tightening its crypto regulations, especially around gambling-like activities. This warning could signal further enforcement actions. Other exchanges may follow suit, especially as regulators globally eye prediction markets. Bitbank's move is a concrete step, not just a policy statement.
Bitbank has not specified a deadline for users to withdraw funds or close positions. It remains unclear whether the exchange will take action retroactively or only for future transactions. Users are left waiting for more details.
