Bitbank tells Polymarket punters: your account is not a betting slip 🎲

One of Japan's largest cryptocurrency exchanges has warned users that transactions tied to prediction market platforms such as Polymarket could trigger account suspensions under the country's gambling laws. Bitbank said in a notice published on Monday that it may restrict accounts making deposits or withdrawals linked to prediction market services, highlighting the regulatory uncertainty surrounding the sector in Japan.

The exchange said users whose accounts are suspended would lose access to a wide range of services, including account logins, deposits and withdrawals, as well as crypto trading. "We will not be liable for any damages incurred by our customers as a result of the account suspension measures," Bitbank added. The notice urged customers to exercise caution when using external services and avoid becoming involved in criminal activity or legal disputes. Bitbank did not cite any specific regulatory action or government directive behind the warning, and said prediction market platforms that allow users to bet on election results, sports outcomes and other future events could be considered gambling under Japanese law when used for financial gain. Cointelegraph asked Bitbank what prompted the notice but had not received a response by publication.

The warning comes as prediction markets face growing scrutiny globally, with regulators in multiple jurisdictions taking action against Polymarket and Kalshi over gambling concerns. Polymarket currently lists Japan among 35 restricted jurisdictions in its access policy, and the company signaled in May that it was exploring expansion in Japan. Japan has not issued formal guidance specifically on prediction markets, but Bitbank's stance indicates that at least some crypto companies are taking a more cautious approach to services that could be classified as gambling.