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Japan’s Bitbank, 1 of the country’s largest cryptocurrency exchanges, announced connected June 15, 2026, that users transacting with prediction market platforms, including Polymarket, could look contiguous relationship suspension.
Key Takeaways
- Bitbank froze accounts tied to Polymarket connected June 15, 2026, cutting disconnected each login, trading, and withdrawal functions.
- Japan’s Penal Code Article 185 classifies crypto event-contract trading arsenic gambling, with fines up to 500,000 yen.
- Polymarket targets Japan marketplace authorization by 2030, but presently geoblocks Japanese IP addresses per its ToS.
Bitbank Draws the Line
The speech posted a formal notice citing Japan’s longstanding gambling prohibitions. Bitbank said it would determination to suspend immoderate relationship wherever deposits oregon withdrawals connected to prediction market services, oregon services suspected of being related to them, are detected.
The suspension covers each relationship functions without exception.
Affected users would lose:
- Login access
- Crypto plus deposits and withdrawals
- Japanese yen withdrawals
- All buying and selling of crypto assets
Bitbank besides stated it would not beryllium liable for damages resulting from relationship suspension measures.
Why Japan Treats Polymarket arsenic Gambling
Polymarket operates arsenic a decentralized event-contract level wherever users stake cryptocurrency, typically USDC, connected outcomes specified arsenic predetermination results, economical indicators, oregon sports events.
Under Japan’s Penal Code, Article 185, gambling is defined arsenic staking thing of worth connected an uncertain real-world outcome. The constrictive objection covers lone trivial, non-monetary societal bets. Crypto-settled lawsuit contracts bash not qualify.
The National Police Agency has stated explicitly that accessing and participating successful online gambling operated legally overseas remains a transgression for Japanese residents. That guidance applies careless of however a level labels its product.
Prediction markets clasp nary authorization nether Japan’s Financial Instruments and Exchange Act, and the Financial Services Agency has issued nary circumstantial guidance creating a ineligible way for them.
Polymarket Already Blocks Japan
Polymarket has geoblocked its web frontend for Japanese IP addresses, placing Japan among astir 34 restricted jurisdictions. The level explicitly prohibits VPN workarounds arsenic a Terms of Service violation.
Rather than run successful ineligible uncertainty, Polymarket has appointed a Japan typical and is lobbying for regulatory authorization. The institution is targeting authorities support astir 2030.
What Suspension Means successful Practice
Bitbank’s announcement specifies a afloat relationship freeze, not a partial restriction. A suspended idiosyncratic cannot log in, determination funds, person assets, oregon retreat yen. The speech offered a constricted remedy for mistaken suspensions: users not utilizing prediction market services tin taxable an enquiry signifier for review.
That carve-out matters due to the fact that automated detection based connected counterparty wallet addresses tin sometimes emblem unrelated transactions.
Criminal Exposure Remains Real
Japanese residents who enactment actively look much than relationship inconvenience. Criminal penalties nether Article 185 see fines of up to 500,000 yen. Habitual enactment carries heavier sanctions. Enforcement has intensified since 2025 amendments to Japan‘s Basic Act connected Countermeasures Against Gambling Addiction, which specifically targeted amerciable online gambling and produced grounds enforcement actions.
No large-scale enforcement targeting Polymarket users specifically has been wide reported arsenic of mid-2026, but the ineligible model puts progressive users astatine ongoing risk.
The Broader Picture
Japan’s gambling restrictions hint to Meiji-era instrumentality and stay tightly controlled. The authorities authorizes nationalist equine racing, bicycle racing, and motorboat betting, positive government-operated lotteries. Online gambling extracurricular those channels remains broadly prohibited.
Domestic workarounds exist, including points-based prediction models that decouple information from nonstop currency payouts, but afloat decentralized crypto-settled prediction markets look a steep way to legalization.
Bitbank’s announcement makes wide that Japanese users should dainty immoderate transportation to Polymarket oregon akin platforms arsenic an account-level risk, effectual immediately.
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