Bitbank Flags Polymarket Transfers as Japan Gambling Risk
Bitbank warned customers on Monday that deposits and withdrawals tied to prediction market services such as Polymarket may lead to account restrictions in Japan. The exchange cited concern that event-based wagering for financial gain could fall within the scope of Japanese gambling rules.
The company said it may suspend or restrict accounts involved in transactions connected to prediction markets, where users place financial stakes on future outcomes. Named examples include elections, sporting events and other future developments.
Customers subject to suspension could lose access to account login, crypto deposits and withdrawals, and trading services. Bitbank added that it “will not be liable for any damages incurred by our customers as a result of the account suspension measures.”
The notice did not point to a specific order from Japanese regulators or any government enforcement action. Rather, Bitbank framed the measure as a compliance risk control and urged users to avoid activity that could expose them to criminal liability or legal disputes.
Polymarket’s Japan Ambitions
Polymarket currently lists Japan among 35 restricted jurisdictions, meaning users from the country cannot access its service. Yet the company indicated in May that it explored possible expansion opportunities in Japan.
That creates a compliance question for any crypto exchange or payment provider with exposure to prediction market traffic. Japan prohibits most forms of gambling unless they fall under limited approved exceptions, such as state-authorised betting activity. Regulators have not yet issued specific guidance on blockchain-based prediction markets, but Bitbank’s move suggests domestic crypto firms prefer to act before a formal ruling arrives.
Wider Regulatory Pressure
The warning reflects similar pressure in other markets, where regulators review the line between event-based trading, financial speculation and gambling. Polymarket and Kalshi have both drawn scrutiny for their markets that cover elections, sports, crypto developments and global events.
💡TGJ Take
Bitbank’s warning shows Japanese crypto firms are not prepared to wait for a formal gambling ruling before they reduce exposure. For exchanges and payment providers, prediction market activity now looks like a compliance trigger, not just a user-behaviour issue. Polymarket’s Japan ambitions will need more than geo-restrictions and product framing if local firms refuse to process related flows. Affiliates should also be careful: Japan-promotion of prediction markets may create legal exposure even before regulators issue dedicated guidance.
