Bitbank, one of Japan’s largest cryptocurrency exchanges, has warned customers that using prediction market platforms such as Polymarket could lead to account restrictions if the transactions are viewed as conflicting with the country’s gambling laws.
In a notice published on Monday, the exchange said it may suspend accounts involved in deposits or withdrawals connected to prediction market services. The move reflects growing caution among crypto businesses as regulators worldwide pay closer attention to platforms that allow users to wager on future events.
当社口座より予測市場サービスとのお取引が確認された場合は、口座の停止措置を取らせていただきます。ご注意ください。https://t.co/HXQ2vPqSBW
— ビットバンク Bitbank, inc. (@bitbank_inc) June 15, 2026
Bitbank indicates stricter oversight of prediction market activity
According to the exchange, users whose accounts are suspended could lose access to key services, including logging in, making deposits or withdrawals, and trading cryptocurrencies.
Bitbank also stated that it would not be responsible for losses or damages resulting from account restrictions imposed under its policies. The company urged customers to be careful when interacting with external platforms and to avoid activities that could expose them to legal or regulatory risks.
While the exchange did not point to a specific government order or enforcement action, it said prediction markets involving financial gains from election results, sports events, or other outcomes could fall under Japan’s gambling laws.
Crypto industry faces uncertainty over prediction markets
The warning comes as prediction market platforms continue to attract regulatory attention in several countries. Services like Polymarket and Kalshi have faced questions from authorities over whether their products resemble gambling or regulated financial markets.
Just recently, South Korean authorities launched the country’s first known investigation into users of the crypto-powered prediction market platform Polymarket. James Comer, who leads the House Oversight Committee, also started an investigation into the prediction platforms Kalshi and Polymarket.
For crypto exchanges operating in Japan, the lack of clear guidance on prediction markets creates compliance challenges. Bitbank’s notice suggests companies are taking preventive measures to reduce legal and regulatory exposure.
Polymarket’s Japan plans face fresh questions
Polymarket currently lists Japan among the jurisdictions where access to its platform is restricted. However, the company indicated earlier this year that it was exploring opportunities to expand into the Japanese market.
Bitbank’s latest warning may complicate those ambitions by highlighting the legal risks tied to prediction market transactions. Until regulators provide clearer rules, crypto users and exchanges in Japan are likely to remain cautious when dealing with platforms that combine digital assets with event-based betting.
Meanwhile, the U.S. Commodity Futures Trading Commission (CFTC) is preparing a new regulatory framework for prediction markets. Rather than imposing blanket restrictions, the proposed rules would create a structured process for reviewing event contracts individually. This move could have implications for crypto-based platform Polymarket and rival exchange Kalshi.
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