Polymarket tightens KYC after geoblocking and ISP blocks

Polymarket has begun requiring identity verification for international traders and is suspending or restricting accounts it flags as evading geolocation controls, including users routing traffic through virtual private networks. The changes follow ISP-ordered blocks in several countries and a U.S. House oversight letter in May 2026 asking for details on KYC enforcement and detection of suspicious trading.

The company runs two separate services. An offshore international site historically allowed anonymous, wallet-based access and handled heavy trading volume during the 2024 U.S. elections. A domestic U.S. platform, operated by QCX LLC and regulated as a Designated Contract Market by the Commodity Futures Trading Commission, already requires full identity verification for American users.

Polymarket is directing wallet-based international users toward know-your-customer checks and has begun flagging and restricting accounts it believes are bypassing location limits. Traders who complete identity checks may receive benefits such as access to direct co-location for lower trading latency. The firm has not announced a final deadline for mandatory KYC across its international platform.

The platform blocks access from roughly 33 to 35 jurisdictions, including the United States, Russia, France, the United Kingdom, Germany, Iran and the Netherlands. Spain ordered internet service providers to block Polymarket in May 2026 over concerns about unlicensed gambling. Indonesia and India have taken similar access-restriction measures.

Polymarket’s terms prohibit tools that mask location, but low-cost VPNs have allowed some users to bypass those controls. Regulators and compliance officials say such circumvention raises the risk of violations of U.S. sanctions enforced by the Office of Foreign Assets Control and increases potential anti-money-laundering gaps. The May 2026 U.S. House letter requested information on geoblocking controls, KYC procedures and systems for identifying suspicious trading patterns.

High-profile enforcement questions have added pressure on the platform. An active-duty U.S. Army soldier has been accused of using classified information to place trades on prediction markets, a case that highlights legal risks tied to anonymous access. Academic and private researchers have flagged suspected coordinated trading around military and geopolitical events.

In March 2026 Polymarket released enhanced market integrity rules that cover both its international and domestic platforms. The rules describe surveillance partnerships, anomaly detection systems and blockchain forensics carried out in part with external analytics firms. The policy allows for account suspension, permanent bans, financial penalties and referrals to law enforcement for violations. Polymarket has cooperated with authorities in selected cases and has emphasized its monitoring capabilities.

Market participants and competitors are observing the changes. Firms aiming to operate in regulated markets increasingly treat identity verification and real-time transaction surveillance as standard compliance elements. Tightened controls are intended to reduce regulatory exposure while supporting relationships with institutional partners and investors, including the parent company of the New York Stock Exchange.