Polymarket weighs KYC requirements amid global crackdown on prediction markets
The predictions market operator reportedly explored mandatory user verification requirements, breaking from its policies of allowing traders to access its services using pseudonyms.
Prediction markets platform Polymarket is reportedly considering measures to verify users in response to pressure from global authorities over sanctions violations and other areas of legal risk to the company.
According to a Wednesday report by The Information, Polymarket has considered mandatory user verification requirements more in line with Know Your Customer (KYC) standards. The move comes as multiple countries have blocked or restricted access to the predictions market platform over concerns about illegal gambling.
As of Wednesday, Polymarket had "geoblocked" 35 countries, restricting residents from placing orders on the platform. These jurisdictions included Iran, Russia and North Korea, which are under sanctions from many countries over military conflicts.
Polymarket users are allowed to operate under pseudonyms, generally preventing the public from knowing their identities and opening the platform to potential legal risks over bets on controversial event contracts. For example, a US soldier was revealed to be the Polymarket user who bet on the capture of Venezuelan President Nicolás Maduro, allegedly using classified information that resulted in a $400,000 payout.
Cointelegraph reached out to Polymarket for comment on The Information report but did not receive an immediate response.
Trump weighs in on federal regulation of prediction markets
US President Donald Trump took to his social media platform Truth Social on Tuesday to express his support for the US Commodity Futures Trading Commission (CFTC) having "exclusive jurisdiction" over prediction markets.
His statements were in line with those of CFTC Chair Michael Selig — Trump's pick to the regulator — who has filed lawsuits against state-level authorities cracking down on platforms like Kalshi and Polymarket. Trump's son, Donald Trump Jr., is a strategic adviser to Kalshi and an adviser to Polymarket.
The president's public support for the CFTC came after lawmakers in the US House of Representatives announced a probe into Kalshi and Polymarket, citing the risks of elected officials engaged in insider trading. Polymarket listed several event contracts related to the US-Israel war with Iran.