Polymarket says no mandatory KYC planned for main prediction market

Polymarket has clarified that it is not introducing mandatory Know Your Customer checks across its main prediction market platform despite renewed scrutiny over compliance and restricted-jurisdiction access.

In a post on X, Polymarket vice president of engineering Josh Stevens said identity verification applies only to a new beta product currently being tested with a limited group of users.

Stevens explained that “no KYC is being added to any part of existing polymarket.com with this launch” and later added that the beta product would not require KYC once testing ends.

The clarification comes less than a day after a report from The Information suggested Polymarket had explored mandatory verification measures.

Stevens also responded “no” when asked whether KYC could eventually become mandatory on the main platform.

Nevertheless, regulatory pressure around prediction markets has continued to build across several regions, especially as authorities question whether geoblocking systems and anonymous trading structures are enough to prevent restricted access.

Polymarket faces growing compliance pressure

According to Polymarket’s public documentation, users from dozens of jurisdictions remain blocked from trading or restricted to closing existing positions. The company states that these controls are tied to sanctions compliance, anti-money laundering rules and local regulatory obligations.

Among the restricted regions listed by Polymarket are the U.S., Russia, the U.K., France, Germany, Iran and the Netherlands. In some jurisdictions, including Poland, Singapore, Thailand and Taiwan, users are limited to close-only trading activity. Japan is currently listed under a frontend restriction category.

Earlier reporting from The Information said the company had considered stronger identity verification procedures as regulators increased pressure over sanctions exposure and access through unofficial workarounds. It alleged that some traders in blocked markets have continued reaching the platform through bots, alternative routing tools and community-organized methods that bypass standard geofencing restrictions.

Inside Polymarket’s own developer documentation, the platform instructs builders to check a geoblock endpoint before processing trades and warns that orders from restricted regions will be rejected. Separate documentation also notes that users who complete KYC or KYB verification can gain access to direct co-location services in the platform’s primary server region.

Regulators and lawmakers have also intensified scrutiny around market integrity and insider trading risks tied to event contracts.

Earlier this year, seven members of the U.S. House of Representatives questioned whether the Commodity Futures Trading Commission had acted aggressively enough against suspicious trading activity connected to geopolitical prediction markets involving Iran and Venezuela.

At the enforcement level, federal agencies have recently pursued insider trading allegations tied directly to Polymarket activity. As previously reported, U.S. authorities charged Google software engineer Michele Spagnuolo with allegedly using confidential company information to profit from Polymarket bets linked to Google’s 2025 search trend rankings.

Access restrictions continue expanding

Outside the U.S., enforcement pressure has also expanded into Europe and Latin America.

Back in April, Brazilian authorities moved to block 27 prediction market platforms, including Polymarket and Kalshi, after regulators said the services operated outside the country’s legal structure. 

More recently, Spain’s gambling regulator blocked local access to both platforms while legal proceedings tied to alleged unlicensed gambling activity continue.

As previously reported by crypto.news, similar reports have also emerged from India.

Despite those restrictions, Polymarket has still pursued international expansion. Reports in April said the company had entered discussions with the CFTC regarding a possible return to the U.S. market, while separate reports in May said the platform was exploring entry into Japan despite strict gambling laws in the country.

At the platform level, Polymarket has already tightened certain internal rules. In March, the company introduced tighter market-integrity policies across both its decentralized platform and its CFTC-regulated exchange operations, warning that violations could result in account suspension, monetary penalties, or referrals to law enforcement agencies.