Japan's Bitbank Warns Users About Prediction Market Platforms

Bitbank, one of Japan’s largest cryptocurrency exchanges, warned users that transactions linked to prediction market platforms such as Polymarket could result in account suspensions due to potential conflicts with the country's gambling laws.

In a notice published on Monday, Bitbank said it may restrict accounts making deposits or withdrawals connected to prediction market services.

“Under Japanese law, participation in certain prediction market services may involve legal and regulatory risks for residents of Japan,” a spokesperson for Bitbank told Cointelegraph.

The warning highlights the regulatory uncertainty surrounding prediction markets in Japan, where local gambling laws may complicate Polymarket's previously stated interest in expanding into the country.

Bitbank warns of sweeping account restrictions

Bitbank said users whose accounts are suspended would lose access to a wide range of services, including account logins, deposits and withdrawals, as well as crypto trading.

“We will not be liable for any damages incurred by our customers as a result of the account suspension measures,” the exchange added.

Source: Bitbank (translated by Google)

The announcement urged customers to exercise caution when using external services and avoid becoming involved in criminal activity or legal disputes.

Bitbank did not cite any specific regulatory action or government directive behind the warning.

Related: SBI eyes Bitbank deal as Japan’s crypto exchange market consolidates

Questions emerge as Polymarket eyes expansion

Bitbank’s notice comes as prediction markets face growing scrutiny globally, with regulators in multiple jurisdictions taking action against Polymarket and Kalshi over gambling concerns.

Polymarket currently lists Japan among 35 restricted jurisdictions in its access policy. The company signaled in May that it was exploring expansion in Japan, raising questions about how it may navigate potential conflicts with local gambling laws.

Source: Bitbank

Japan has not issued formal guidance specifically on prediction markets, but Bitbank’s warning indicates that at least some crypto companies are taking a more cautious approach to services that could be classified as gambling.