Japan’s Bitbank warns users, may block Polymarket transactions
Japanese cryptocurrency exchange Bitbank has warned users that transactions linked to prediction market platforms such as Polymarket will result in account limits, citing rules under Japan’s gambling laws.
In a notice issued on Monday, the exchange said it may suspend or limit accounts found to be sending funds to or receiving funds from prediction market services. These platforms allow users to trade on the outcome of future events, including elections, sporting events and economic developments.
Bitbank said customers affected by such measures could lose access to key account functions, including cryptocurrency deposits and withdrawals, trading services and even account logins. The company also stated that it would not be responsible for any losses resulting from account restrictions.
The company did not reveal that the warning was prompted by any particular enforcement action. Nevertheless, it said prediction market activities that involve staking money on future outcomes may carry legal risks under Japanese gambling regulations.
Markets growing in Asia
The announcement comes at a time when prediction markets are attracting growing attention from regulators around the world. Once considered a niche corner of the crypto industry, platforms such as Polymarket and Kalshi have expanded rapidly by offering markets tied to everything from elections and sporting results to global events and economic indicators.
While supporters argue that these platforms provide a new way to forecast real-world outcomes, regulators in several jurisdictions are still wrestling with whether prediction markets are financial products or gambling services.
Japan remains a tough market for gambling-related industries. Most forms of betting are banned under local law. However, public lotteries and state-approved horse racing remain legal. And the country also has a big pachinko industry working under a unique structure that avoids direct cash betting.
Platform seeking approval
Against that backdrop, Polymarket currently blocks access to users in Japan and lists the country as one of its restricted jurisdictions. Yet reports suggest the company is already looking at ways to establish a future presence there. The warning comes just weeks after reports emerged that Polymarket was actively exploring a future expansion into Japan despite the country’s restrictive gambling laws.
According to Bloomberg, the company has appointed Mike Eidlin, currently head of Japan at Jupiter, to lead its efforts in the market. People familiar with the matter said Polymarket hopes to secure approval to operate in Japan by 2030, seeing the country as a major long-term growth opportunity.
Despite the reported ambitions, Japan stays one of the 35 restricted jurisdictions on Polymarket’s platform. Local users are currently unable to access the service due to regulatory and compliance considerations.
The reported plans come as Polymarket continues to expand beyond its traditional markets. The company has recently rolled out a Chinese-language version of its platform and has been increasing its focus on Asian users as global interest in prediction markets continues to grow.
The company has also strengthened its position in the United States through the acquisition of QCEX, allowing it to launch a federally regulated offering for American customers. Yet, Bitbank’s decision shows the cautious approach being adopted by parts of Japan’s crypto industry.
While prediction markets continue to expand internationally, questions about their legal status remain unresolved in many jurisdictions, leaving operators and users to engage in a complex regulatory environment.
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