Bitbank Warns Users on Polymarket Transactions Over Gambling Risks
Japanese cryptocurrency exchange Bitbank has warned customers that transactions linked to prediction market platforms such as Polymarket could lead to account restrictions. The company said the issue raises concerns over possible conflicts with Japan’s gambling regulations.
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Account Restrictions Possible
In a notice issued on Monday, Bitbank said it may suspend or restrict accounts found to be making deposits or withdrawals connected to prediction market services. Those platforms allow users to place financial stakes on the outcomes of future events, which has drawn growing regulatory attention in Japan.
According to Bitbank, those who have faced suspension on their accounts may risk losing access to a wide variety of services, such as the account login function, cryptocurrency transactions, and trading. Bitbank said that it would not be responsible for any damages suffered by the customers because of the imposed measures.
Users were advised by the company to be careful when using third-party platforms and not engage in any form of activities which may lead them to face criminal proceedings. It did not say its decision came in response to any specific instruction from Japanese regulators or any government enforcement action
Gambling Concerns In Focus
Bitbank mentioned that prediction market systems, which permit users to bet on results like elections, sporting events, and other future outcomes, could become subject to gambling laws if users use the system to make profits from it. This shows the ambiguity regarding how these sites could be regulated in Japan.
There are strict gambling laws in Japan, where gambling is strictly prohibited except where the law explicitly states otherwise, such as officially sanctioned gambling. While Japanese authorities have not yet issued specific guidance on blockchain-based prediction markets, Bitbank’s notice suggests domestic cryptocurrency firms are taking a cautious position.
The company’s warning comes as Polymarket has previously shown interest in entering Japan despite possible legal obstacles. At the same time, the platform currently lists Japan among 35 restricted jurisdictions under its access policy, meaning users in the country are not permitted to access its services.
Wider Regulatory Scrutiny
The announcement is made against the backdrop of growing worldwide concerns over prediction market operations, and regulators in various countries have been investigating whether companies like Polymarket and Kalshi fall into the gambling category. Indeed, the prediction market site enables users to participate in trading bets based on the outcomes of future events, including political polls, sports events, cryptocurrency trends, and many others.
Despite the fact that the platform does not allow access by Japanese citizens, Polymarket announced back in May that it is looking at expansion possibilities in Japan, which has raised doubts regarding how it will position itself without breaking gambling laws.
Caution For Crypto Firms
Bitbank’s notice suggests that Japanese crypto companies are watching the issue closely and preparing for possible compliance risks. The exchange’s warning sits at the intersection of financial products, event-based trading, and gambling regulation, an area that continues to draw attention from regulators globally.
As uncertainty remains over how prediction markets will be classified in Japan, the latest move shows that domestic firms are likely to keep a conservative stance toward services that could be viewed as gambling-related.
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Source: Asia Gaming Brief
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