Polymarket Just Dropped A Bombshell: No Mandatory KYC For Main Prediction Market

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Polymarket says no mandatory KYC planned for main prediction market

Polymarket has confirmed it won’t require users to verify their identities on its main prediction market, even though there’s been increased attention on following regulations and limiting access for some users.

Summary

  • Polymarket said KYC checks are limited to a new beta product and will not apply to its main prediction market platform.
  • The clarification followed reports that regulators have increased pressure over sanctions compliance, restricted market access and anonymous trading activity.
  • Brazil and Spain have already moved against Polymarket operations as U.S. regulators continue examining insider trading and market integrity risks tied to prediction markets.

Josh Stevens, Polymarket’s VP of Engineering, explained in a post on X that identity verification is only being used for a new beta version of their product, which is currently being tested by a small group of users.

That’s not true. We’re releasing a new beta version of our product to a limited number of users, and we’re only asking for Know Your Customer (KYC) information during this beta test. This launch doesn’t add KYC requirements to any of our existing products. Once the beta period is over, we won’t require KYC for this product either.

— Josh (@devjoshstevens) May 27, 2026

Stevens clarified that the initial launch won’t include any ‘Know Your Customer’ (KYC) requirements for the current Polymarket website. He also stated that once testing is complete, the beta version of the product will not require KYC either.

This explanation arrives just under a day after The Information reported that Polymarket had considered requiring users to verify their identities.

Stevens stated that requiring ‘Know Your Customer’ checks on the main platform is not currently planned.

Despite these efforts, regulators in many areas are still concerned about prediction markets. They’re particularly questioning if methods like blocking access based on location and allowing anonymous trading are truly effective at keeping restricted users from participating.

Polymarket faces growing compliance pressure

As a researcher looking into Polymarket, I’ve found that users in many countries still can’t trade on the platform, or are limited to only closing out any open trades they already have. Polymarket explains these restrictions are due to needing to follow international sanctions, anti-money laundering laws, and the specific regulations of different countries.

Polymarket has certain restrictions based on location. Users in the U.S., Russia, the U.K., France, Germany, Iran, and the Netherlands are blocked from using the platform. In countries like Poland, Singapore, Thailand, and Taiwan, users can only close out existing trades, but can’t open new ones. Finally, users in Japan currently see a limited version of the platform’s interface.

Recent reports from The Information indicate the company was looking into stricter identity checks due to growing regulatory scrutiny regarding sanctions and users finding ways around restrictions. These reports claim that traders in countries with restrictions have continued to access the platform using bots, different connection methods, and groups organizing ways to bypass location-based blocks.

As a Polymarket user, I’ve been digging into their documentation, and it’s pretty clear they’re actively blocking users from certain locations. They actually *tell* developers to check where a trade is coming from and reject it if it’s from a restricted country. On the flip side, if you go through their KYC/KYB process – basically proving who you are – you can get faster access to their servers, which is a nice perk. It seems like they’re balancing compliance with offering better service to verified users.

Officials are paying closer attention to how event contracts might be used for illegal insider trading or to unfairly influence markets.

Earlier this year, seven U.S. Representatives asked if the agency that regulates financial markets, the Commodity Futures Trading Commission, had done enough to investigate unusual trading related to bets on events in Iran and Venezuela.

Federal agencies have recently taken action against insider trading related to the Polymarket platform. Specifically, they’ve accused Google engineer Michele Spagnuolo of illegally using private company data to make profitable bets on Polymarket regarding Google’s expected search trends in 2025.

Access restrictions continue expanding

Outside the U.S., enforcement pressure has also expanded into Europe and Latin America.

As a researcher following the regulatory landscape, I observed that Brazilian authorities took action against 27 prediction market platforms back in April, including well-known names like Polymarket and Kalshi. The regulators determined these platforms weren’t operating within the existing legal framework in Brazil, leading to their blockage.

Recently, Spain’s gambling authority blocked access to both platforms within the country as investigations into possible illegal gambling operations are ongoing.

As previously reported by crypto.news, similar reports have also emerged from India.

Even with the challenges we’ve faced, Polymarket is continuing to look for opportunities to grow internationally. I’ve seen reports that we’re in talks with the CFTC about potentially re-entering the U.S. market. Also, despite Japan’s strict regulations around gambling, we’re exploring the possibility of launching there as well.

Polymarket has strengthened its internal rules to improve fairness and compliance. In March, the company implemented stricter policies for both its main platform and its regulated exchange, stating that breaking these rules could lead to account closures, fines, or legal action.

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2026-05-28 14:02