Polymarket is rolling out stricter access controls, blocking VPN use and nudging traders toward identity verification — a sharp turn from the permissionless model that made the prediction market platform popular. The shift, which comes amid growing regulatory pressure, has already triggered restrictions in more than 33 countries.
What changed and for whom
Basic wallet-connect trading still works for most international users without completing KYC. But permissionless access is no longer a given. The platform now blocks VPN connections outright, and accounts caught bypassing IP-based geoblocks risk suspension or permanent bans. Traders who want to keep operating in restricted regions will have to work within the geofences Polymarket has set.
Users who voluntarily complete Know Your Customer (KYC) or Know Your Business (KYB) checks gain perks like direct server co-location, which cuts latency. For high-volume traders — those with seven-figure positions or rapid five-figure deposit-trade-withdraw cycles — verification may become mandatory under anti-money laundering thresholds.
Regulatory roots of the crackdown
Polymarket’s compliance push follows a $1.4 million settlement with the Commodity Futures Trading Commission in 2022 over unregistered binary options. In 2025, the platform acquired a CFTC-licensed exchange and launched Polymarket US, which requires full KYC for residents. The House Oversight Committee has also stepped in, requesting KYC and geographic enforcement records by June 5.
The company is now blocking access in more than three dozen countries, including those under OFAC sanctions and jurisdictions with strict gambling laws. The goal is to reduce the threat of shutdowns, blocked withdrawals, and follow-on regulatory action.
Trade-offs for privacy-focused traders
The moves come at a cost for users who valued Polymarket’s original ethos. Privacy-focused traders lose some of what made the platform distinctive — no identity checks, no location tracking, just a wallet and a bet. The new rules don’t ban everyone who refuses KYC, but they shrink the pool of people who can trade without leaving a digital footprint.
Stronger compliance reduces the chance of enforcement actions that could freeze funds or halt operations. But for traders in restricted regions or those who prefer anonymity, the margin for error just got thinner.
June 5 deadline
The House Oversight Committee wants Polymarket to hand over KYC records and geographic enforcement data by June 5. That deadline is the next concrete milestone in a story that keeps moving. How the platform responds — and whether it tightens rules further — will determine how much of the old Polymarket survives.
