Key facts
- Japanese crypto exchange Bitbank warned users that transactions linked to prediction market platforms like Polymarket could result in account suspensions.
- The exchange cited potential conflicts with Japan's gambling laws as the basis for the warning.
- Bitbank stated that suspended accounts would lose access to all services, including trading.
- Polymarket currently lists Japan as a restricted jurisdiction but had explored expansion into the country.
Japanese cryptocurrency exchange Bitbank has issued a warning to its users, stating that transactions connected to prediction market platforms, such as Polymarket, could lead to account suspensions. The exchange cited potential violations of Japan's gambling laws as the reason for this stringent measure.
In a notice released on Monday, Bitbank indicated that it may restrict accounts involved in deposits or withdrawals associated with prediction market services. This move underscores the regulatory ambiguity surrounding prediction markets in Japan, where existing gambling laws could pose challenges to platforms like Polymarket, which had previously expressed interest in entering the Japanese market.
Bitbank clarified that users whose accounts are suspended would face a comprehensive loss of access, including the inability to log in, make deposits or withdrawals, and engage in crypto trading. The exchange explicitly stated its non-liability for any damages customers might incur as a result of these suspension measures.
The exchange urged its customers to exercise caution when utilizing external services and to avoid engaging in activities that could lead to criminal activity or legal disputes. While Bitbank did not reference any specific regulatory directives, it explained that prediction market platforms enabling bets on events like election outcomes or sports results could be legally classified as gambling when financial gain is involved.