Bitbank Warns Polymarket Users of Account Freezes since Japan Tightens Prediction Market Scrutiny

Key Takeaways:

• Bitbank cautioned users that their prediction market associated transactions could lead to customer suspension.
• The exchange particularly mentioned the services provided by Polymarket and other gambling-like sites.
• Suspended users may not be able to trade, withdraw money, deposit money or log into the account.

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The crypto sector in Japan is turning more skeptical towards prediction markets in light of growing concerns regarding them. Bitbank, a major national cryptocurrency exchange, has warned users that they may be barred from using platforms like Polymarket.

当社口座より予測市場サービスとのお取引が確認された場合は、口座の停止措置を取らせていただきます。ご注意ください。https://t.co/HXQ2vPqSBW

— ビットバンク Bitbank, inc. (@bitbank_inc) June 15, 2026

Increasingly, Japanese cryptocurrency companies are exercising more caution with notice, as the prediction markets industry gets more attention from regulators around the world.

Bitbank Targets Prediction Market Transactions

Bitbank stated that it could suspend accounts if deposits and withdrawals were determined to be associated with prediction market service and platforms with similar features.

The exchange referred to the services that let people wager on future events other than political, sports, and real-world such as election outcomes etc. using cryptocurrencies.

Bitbank noted that, although they are operated abroad, Japanese users who come to the platforms for financial gain may still be subject to gambling-related regulations under Japanese law.

If an account is frozen, users are at risk of losing access to most features on the account such as log-in, trading, digital asset withdrawals and Japanese yen withdrawals, the company said.

Read More: Japan Eyes Crypto ETFs and Yen Stablecoins as $320B Digital Asset Race Heats Up

Growing Pressure on Prediction Markets

In the past two years, prediction markets have been one of the quickest growing areas of crypto. During big political events, platforms like Polymarket captured headlines with billions of dollars in trading volume associated with elections, economic releases and geopolitical events.

However, their speedy rise has garnered increased regulatory attention as well.

A number of jurisdictions have doubted whether event-based trading is akin to gambling, with speculation about possibilities to reap monetary gains. Regulators in multiple countries have examined how existing gambling and financial laws apply to decentralized prediction platforms.

Polymarket Faces Another Regulatory Hurdle

The most recent alert is important given that Polymarket has previously expressed interest in expanding its global presence. However Japan is still a challenging market given the focus on gambling-related activities.

Bitbank did not announce a blanket ban on specific services. Instead, the exchange indicated it would monitor transactions and evaluate cases individually when links to prediction market activity are detected.

Exchange Urges Users to Exercise Caution

In addition to worrying about account restrictions, Bitbank also recommended users thoroughly evaluate the risk of joining external platforms.

The company has stressed that users can be caught up in disputes or in actions which could result in legal trouble in their country of origin. It added that it would not have the responsibility of any damages suffered due to the suspension of the accounts.

If Users believe their accounts were restricted incorrectly, Bitbank stated that they can get in touch with customer support to evaluate their account.

The warning reflects crypto exchanges’ growing focus on regulations, as authorities persist in regulating newly emerging sectors like prediction markets, betting products in tokens, and trading on platforms following events.

Read More: Vitalik Warns Prediction Markets Are “Cursed,” Pushes Hedging to Replace Fiat

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