Polymarket Considers KYC Amid Global Crackdown on Bets
The platform recently geoblocked users from 35 countries, including Iran, Russia, and North Korea, while lawmakers and regulators in the United States are scrutinizing prediction markets tied to geopolitical events. President Donald Trump also voiced support for the CFTC maintaining federal oversight of the sector.
Polymarket Faces Pressure to Introduce KYC
Prediction markets platform Polymarket is reportedly considering introducing stricter identity verification measures as regulators around the world increase pressure on the company over sanctions compliance and legal concerns. According to a recent report by The Information, the platform explored implementing Know Your Customer (KYC) requirements that would require users to verify their identities before participating in trades or placing bets on event outcomes.
The move represents a big shift for Polymarket, which has allowed users to operate under pseudonyms. While this anonymity has been attractive to many crypto users, it also raised serious concerns among regulators who argue that such systems can be exploited for illegal activity, sanctions evasion, and insider trading. Authorities in several countries have already restricted or blocked access to prediction market platforms over concerns that they operate as unlicensed gambling services rather than legitimate financial markets.
Just this week, Polymarket reportedly geoblocked users from 35 countries, including sanctioned jurisdictions like Iran, Russia, and North Korea. These restrictions are part of efforts to limit regulatory exposure as governments scrutinize decentralized and crypto-based betting platforms.
Some of Polymarket’s blocked countries (Source: Polymarket)
Concerns around controversial betting markets have also intensified. One widely discussed case involved a US soldier who allegedly used classified information to place a successful bet related to the capture of Venezuelan President Nicolás Maduro. Reports claim the trade resulted in roughly $400,000 in profits, which led to debates over whether prediction markets can be manipulated through insider knowledge or access to sensitive information.
The regulatory spotlight on prediction markets expanded in the United States as well. President Donald Trump recently voiced strong support for the Commodity Futures Trading Commission (CFTC) maintaining exclusive authority over prediction markets rather than allowing individual states to regulate them separately. Trump argued that prediction markets represent an important emerging financial sector that should stay under federal oversight to support innovation and economic growth.
Truth Social post by President Donald Trump
At the same time, lawmakers in the US House of Representatives have launched inquiries into prediction market activity tied to geopolitical events and potential insider trading risks. Polymarket has listed contracts related to conflicts involving Iran and Israel,which only increased concerns about the ethical and regulatory implications of betting on sensitive global events.
Overall, the growing pressure from regulators, combined with rising concerns about sanctions compliance and insider activity, could push Polymarket toward adopting stricter identity verification measures in an attempt to preserve access to key markets and avoid future legal complications.