According to The Information, Polymarket has deployed advanced detection methods to identify and block VPN traffic, with accounts exhibiting patterns consistent with VPN usage or suspicious behavior facing suspension or restriction. The company has not publicly disclosed the exact number of accounts affected or the specific detection techniques used. This represents a significant escalation from the platform's previous stance, as it now strictly polices VPN use with accounts that bypass IP-based geoblocks risking suspension or permanent bans. The tightening of VPN enforcement suggests the platform is proactively addressing concerns that users from sanctioned jurisdictions may be bypassing geographic restrictions.
As reported by The Information, Polymarket has introduced an optional feature allowing users to voluntarily submit identity verification documents, though this feature is not mandatory. While users can choose whether to submit identity documents, the platform may incentivize verification in the future. The new voluntary ID verification option allows users to submit government-issued identification documents, which could serve as a trust signal for remaining users and potentially reduce fraudulent activity risk. This voluntary system may create a two-tier system where verified users enjoy higher trust or access privileges in the future, influencing user behavior and platform liquidity.
According to reports from The Information, Polymarket is encouraging traders toward voluntary identity checks while implementing stricter enforcement against VPN use. The world's largest prediction market is moving away from its long-standing permissionless trading model as it faces mounting sanctions, legal, and regulatory pressure on its operations. As reported by multiple sources, the company is now weighing stricter identity checks as rising scrutiny of prediction markets pushes it to review how it manages legal and sanctions-related risks across its platform. The voluntary ID verification feature may position Polymarket more favorably in ongoing discussions with regulators.
As reported by The Information, basic wallet-connect trading still works for most international users who can deposit USD Coin (USDC) on Polygon without uploading personal documents. However, this permissionless access is no longer guaranteed across the board. Polymarket now strictly polices VPN use, and accounts that bypass IP-based geoblocks risk suspension or permanent bans. The platform has geoblocked 35 countries as of Wednesday, preventing residents from placing orders, with restricted jurisdictions including Iran, Russia, and North Korea - countries subject to sanctions by many governments over military conflicts. For users who rely on VPNs for privacy or to access Polymarket from restricted regions, the crackdown may significantly limit their ability to participate.
As reported by The Information, the international platform remains separate from Polymarket US, which requires full KYC since the company acquired a CFTC-licensed exchange in 2025. This shift followed a $1.4 million CFTC settlement in 2022 over unregistered binary options. More than 33 countries now face full restrictions or technical blocks, ranging from OFAC-sanctioned states to jurisdictions with strict gambling rules. The regulatory scrutiny has intensified with U.S. lawmakers launching a probe into Kalshi and Polymarket over potential insider trading risks, as prediction markets face increased federal oversight interest. These measures reflect a broader trend among crypto platforms moving toward compliance, with similar enforcement seen at centralized exchanges like Binance and Coinbase.
