Japanese cryptocurrency exchange Bitbank warned users on Monday that accounts linked to prediction market platforms may face suspension, citing potential conflicts with Japan’s gambling laws.
The warning targets transactions connected to Polymarket and similar services that allow users to bet on election results, sports outcomes, and other future events. Bitbank said such platforms could be classified as gambling under Japanese law when used for financial gain.
Polymarket currently lists Japan among 35 restricted jurisdictions in its access policy. The platform signaled in May that it was exploring expansion in Japan, but Bitbank’s notice signals regulatory obstacles to such a move.
Bitbank did not cite any specific regulatory action or government directive behind the warning. Japan has not issued formal guidance specifically on prediction markets. The exchange also did not specify which prediction market services beyond Polymarket triggered the notice, nor did it detail the scope or timeline of potential account suspensions.
The warning included a liability disclaimer: “We will not be liable for any damages incurred by our customers as a result of the account suspension measures,” Bitbank stated.
Broader regulatory pressure on prediction markets
Prediction markets face growing scrutiny globally. Regulators in multiple jurisdictions have taken action against Polymarket and Kalshi, another prediction market platform, over gambling concerns. Bitbank’s move reflects a widening pattern of enforcement against platforms that operate in legal gray zones across different countries.
Bitbank is one of Japan’s largest cryptocurrency exchanges. The exchange did not disclose what specifically prompted the notice or respond to inquiries about the decision.
