Polymarket has officially debuted a structured online portal to collect user identity verification documents, marking a definitive shift away from its historically permissionless, email-only onboarding model. According to The Information, the platform is blocking suspicious accounts and cracking down on users accessing the service through virtual private networks (VPNs). The company has also introduced an optional feature allowing users to complete identity verification, though this remains voluntary rather than mandatory for existing users.
The KYC implementation follows reports that regulators have increased pressure over sanctions compliance, restricted market access and anonymous trading activity. As reported by The Information, the company had considered stronger identity verification procedures as regulators increased pressure over sanctions exposure and access through unofficial workarounds. Some traders in blocked markets have continued reaching the platform through bots, alternative routing tools and community-organized methods that bypass standard geofencing restrictions.
According to Polymarket's public documentation, users from dozens of jurisdictions remain blocked from trading or restricted to closing existing positions. The company states that these controls are tied to sanctions compliance, anti-money laundering rules and local regulatory obligations. Among the restricted regions listed by Polymarket are the U.S., Russia, the U.K., France, Germany, Iran and the Netherlands. In some jurisdictions, including Poland, Singapore, Thailand and Taiwan, users are limited to close-only trading activity, while Japan is currently listed under a frontend restriction category.
Outside the U.S., enforcement pressure has expanded into Europe and Latin America. According to reports, Brazilian authorities moved to block 27 prediction market platforms in April, including Polymarket and Kalshi, after regulators said the services operated outside the country's legal structure. More recently, Spain's gambling regulator blocked local access to both platforms while legal proceedings tied to alleged unlicensed gambling activity continue. At the enforcement level, federal agencies have pursued insider trading allegations tied directly to Polymarket activity, including charges against Google software engineer Michele Spagnuolo for allegedly using confidential company information to profit from Polymarket bets.
Despite those restrictions, Polymarket has still pursued international expansion. Reports indicate the company had entered discussions with the CFTC regarding a possible return to the U.S. market, while separate reports suggest the platform was exploring entry into Japan despite strict gambling laws in the country. At the platform level, Polymarket has already tightened certain internal rules, introducing tighter market-integrity policies in March that warn violations could result in account suspension, monetary penalties, or referrals to law enforcement agencies.
