The crypto prediction market Polymarket is affected by regulatory issues and is currently strictly using KYC to verify user identities. Any suspicious accounts and accounts that use VPN to bypass geographical location supervision will be banned. As for forecasters who are accustomed to anonymous transactions, they may be affected by platform policies. However, the platform should currently be determined to reduce regulatory risks and complete necessary compliance measures.
Why KYC and crackdown on VPNs:
Polymarket operates in the U.S. market through an independent entity, QCX LLC, which is regulated by the U.S. Commodity Futures Trading Commission. This independent entity mainly provides services to cryptocurrency forecasters from the United States. According to regulatory requirements, Polymarket must conduct complete identity authentication for all U.S. users, and any unauthenticated user cannot trade directly on Polymarket.
In the international market, Polymarket provides access based on cryptocurrency wallets through offshore international platforms. This method does not require real-name authentication, but anonymous access based on encrypted wallets does not support access by US users. At the same time, in accordance with the requirements of different jurisdictions, Polymarket also blocks users from 33 to 35 jurisdictions, including the United States, Russia, France, the United Kingdom, Germany, Iran, the Netherlands, etc.
Of course, users can easily bypass jurisdictional restrictions through VPN, and Polymarket's terms of service clearly prohibit the use of VPN or other tools to bypass access restrictions. Polymarket is essentially an encrypted gambling platform. Different jurisdictions have different legal policies. For example, Spain, India, and Indonesia have explicitly prohibited Polymarket from providing services to their nationals, and users in these regions use VPN to bypass restrictions.
This brings about potential compliance issues. This month, Spanish regulators asked domestic Internet service providers to directly block Polymarket on the grounds of illegal gambling. Indonesia and India have also taken similar actions. If Polymarket does not strengthen risk control measures, it may be sanctioned by more jurisdictions, which may incur many legal liabilities.
If abnormal access is detected, it may be restricted or blocked:
Starting from May 27, 2026, Polymarket will begin to strengthen its risk control policy. The measures taken include using anomaly detection systems and on-chain data for blockchain forensics. Users who are detected trying to bypass jurisdictions for access, users who are in the United States but do not conduct compliant KYC authentication, and any users who use VPN for access may have their accounts suspended, permanently banned, fined, or relevant illegal clues handed over to law enforcement agencies.
Of course, some users who pay attention to privacy and security may use tools including Firefox VPN for access. Polymarket does not have a policy to differentiate between privacy protection tools and tools for bypassing jurisdictional restrictions. However, for crypto prediction investors who use Polymarket, they may need to pay attention to access risks to avoid being blocked and affecting their normal use.