Prediction platform Polymarket eyes Japanese market expansion amid regulatory challenges: Sources
The prediction market platform Polymarket plans to enter Japan's market by 2030 as it faces declining trade activity and increased regulatory challenges worldwide.
The worldwide prediction market platform Polymarket is making plans to enter the Japanese market as regulatory oversight of the industry intensifies across the globe, according to recent reports.
According to a Bloomberg report published on Friday citing sources with knowledge of the situation, the platform has hired Mike Eidlin, who currently serves as head of Japan for cryptocurrency company Jupiter, to spearhead its Japanese operations and is getting ready to advocate for regulatory approval of prediction markets within the nation.
The company aims to secure governmental authorization in Japan before 2030, seeing the country as a significant untapped market opportunity.
These expansion efforts emerge at a time when prediction market platforms, including both Polymarket and its competitor Kalshi, are experiencing heightened regulatory scrutiny on a global scale, with nations like India being among the most recent to take action against such platforms.
Japan's strict gambling rules pose hurdle
The country of Japan maintains rigorous regulations concerning online gambling, allowing wagering only on specific government-sanctioned activities like horse racing and state-run lotteries.
Japanese regulators have intensified their oversight of online betting activities in recent years, with infractions related to online casino usage subject to penalties reaching $3,400 and possible imprisonment of up to three years for those who commit repeated violations.
According to the report, Polymarket stated that the platform has observed "meaningful organic interest from users" within Japan and throughout the broader Asian region, further noting: "We're always evaluating opportunities to expand access globally in compliant and locally appropriate ways."
Cointelegraph reached out to Polymarket seeking additional commentary but did not receive a reply before this article's publication.
Polymarket's Japan community on X already exceeds 53,000 followers
Even though the company is still in the process of seeking regulatory authorization to conduct operations in Japan, Polymarket has already established a Japan-specific X account that boasts over 53,000 followers.
At the time this article was written, Cointelegraph could not find any other regional Polymarket community account on X with a following of similar magnitude.
Japan appears on Polymarket's list of 35 jurisdictions where access is restricted, which also includes the United States, based on the platform's country access policy. Nevertheless, previous investigative reporting suggests that individuals located in restricted territories can potentially still gain access to the platform through the use of tools like VPNs.
Trading volumes fall amid regulatory pressure and competition
Trading activity on Polymarket has experienced downward pressure as regulatory scrutiny increases across numerous jurisdictions and competition intensifies from platforms like Kalshi.
Data from Token Terminal shows that Polymarket's notional trading volume on a monthly basis declined by nearly 15% during April, whereas Kalshi experienced an uptick of approximately 13%.
Access to Polymarket is becoming progressively more limited on a global scale, with the platform now blocked in approximately 34 nations and facing "close-only" limitations in an additional four countries, based on data from Start Polymarket.
India ranks among the most recent jurisdictions taking steps to limit access to prediction market platforms, with regulatory authorities reportedly developing blocking orders targeting competitor platform Kalshi after previously taking enforcement action against Polymarket.