Japanese cryptocurrency exchange Bitbank has warned customers that transactions linked to prediction market platforms such as Polymarket could lead to account restrictions, citing concerns that such services may conflict with Japan’s gambling regulations.
In a notice issued on Monday, the exchange said it may suspend or restrict accounts found to be conducting deposits or withdrawals connected to prediction market services, where users place financial stakes on the outcome of future events. The warning adds to growing regulatory uncertainty surrounding prediction markets in Japan and comes as Polymarket has previously indicated interest in entering the country despite potential legal challenges.
Bitbank stated that customers subject to account suspension measures could lose access to a broad range of services, including account login functions, cryptocurrency deposits and withdrawals, and trading activities. “We will not be liable for any damages incurred by our customers as a result of the account suspension measures,” the company noted in its announcement.
The exchange urged users to exercise caution when interacting with external platforms and warned customers against becoming involved in activities that could expose them to criminal liability or legal disputes. Bitbank did not indicate that its decision followed any specific instruction from Japanese regulators or a government enforcement action. However, the company said prediction market services that allow users to wager on outcomes such as elections, sporting events, and other future developments could potentially fall under gambling regulations if participants use them for financial gain.
The move comes as prediction markets continue to face increased scrutiny worldwide, with regulators in several jurisdictions examining whether platforms such as Polymarket and Kalshi should be treated as gambling operators. Polymarket, which allows users to trade event-based contracts based on future outcomes, has attracted significant attention due to markets covering political elections, sports, cryptocurrency developments, and global events. However, the platform currently lists Japan among 35 restricted jurisdictions under its access policy, meaning users from the country are not permitted to access its services.
Despite this restriction, Polymarket indicated in May that it was exploring possible expansion opportunities in Japan, raising questions about how the company could structure its offering while complying with local gambling laws. Japan maintains strict regulations on gambling activities, with most forms of wagering prohibited unless specifically authorized under limited exceptions such as government-approved betting activities. While Japanese authorities have not yet issued specific regulatory guidance addressing blockchain-based prediction markets, Bitbank’s warning suggests that domestic cryptocurrency companies are adopting a cautious position toward services that could potentially be classified as gambling.
The development follows similar regulatory questions in other markets, as the distinction between financial prediction products, event-based trading, and gambling continues to attract attention from regulators globally.
