Bitbank to freeze Japanese accounts linked to Polymarket
On June 15, 2026 Bitbank warned Japanese users that deposits or withdrawals tied to Polymarket may trigger immediate account suspension, blocking logins, trading and withdrawals.
Bitbank announced on June 15, 2026 that accounts sending or receiving funds linked to prediction market platform Polymarket or services suspected of being related will be suspended. Suspended accounts will be blocked from login, trading, depositing and withdrawing assets, including Japanese yen. The exchange’s notice said it will not accept liability for losses or other damages resulting from such suspensions.
The exchange noted suspensions will be triggered when deposits or withdrawals appear connected to prediction market services. Affected users will be unable to access accounts, convert assets, move crypto, or withdraw yen. Customers who believe a suspension is erroneous can submit an inquiry form for review; Bitbank warned automated detection based on counterparty wallet addresses can flag unrelated transactions.
Japan’s Penal Code Article 185 classifies staking value on uncertain real-world outcomes as gambling. The National Police Agency has indicated that accessing online gambling platforms operated legally abroad can be a crime for residents. Penalties for gambling include fines up to 500,000 yen, with heavier sanctions for habitual offenders. Enforcement activity increased after 2025 amendments to the Basic Act on Countermeasures Against Gambling Addiction.
Polymarket operates as a decentralized event-contract platform where users typically stake USDC on outcomes such as elections, economic indicators or sports results. The platform geoblocks Japanese IP addresses and prohibits VPN use under its terms of service. Polymarket has appointed a Japan representative and is seeking regulatory authorization with a target date around 2030, but it is not licensed under Japan’s Financial Instruments and Exchange Act and the Financial Services Agency has not established a legal path for prediction markets.
Because automated systems rely on wallet addresses and transaction patterns, transfers involving counterparties later identified as tied to prediction markets could trigger suspensions for users who did not directly access Polymarket. Authorities had not reported large-scale prosecutions specifically targeting Polymarket users as of mid-2026.
Bitbank’s notice took effect immediately on June 15, 2026 and applies to accounts held by residents in Japan.
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