Key Takeaways
- Bitbank warns users over prediction market activity
- Warning comes as Japan attracts industry interest.
- Global regulators are tightening scrutiny.
Japanese crypto exchange Bitbank has warned customers that transfers linked to prediction market platforms such as Polymarket could result in account suspensions.
The move has highlighted the growing caution among crypto firms as regulators grapple with the legal status of event-based wagering services.
Bitbank Warning Raises Risks For Japanese Crypto Users
In a blog post published this week, Bitbank said users accessing prediction market platforms from Japan for the purpose of earning money could be engaging in conduct that may be treated as gambling under Japanese law.
The exchange said it may restrict accounts if it identifies deposits or withdrawals connected to prediction market operators.
Bitbank said customers whose accounts are suspended could lose access to core services including account login and crypto deposits.
While the exchange did not announce a blanket prohibition, the notice highlights the risks facing Japanese users.
“While these services may be operated by overseas companies, accessing them from within Japan and using them for the purpose of financial gain may constitute gambling or similar activities,” it wrote.
Japan maintains some of the world’s stricter restrictions on gambling, although certain activities such as horse racing and public lotteries operate under specific legal frameworks.
Japan Draws Interest From Prediction Market Operators
The Bitbank warning comes as Japan increasingly features in discussions about the future expansion of prediction market platforms, mainly due to its sizeable crypto market.
Bloomberg reported in May that Polymarket was evaluating a possible long-term entry into Japan.
Polymarket currently blocks users in Japan from using its services due to geographic regulatory requirements.
As prediction market competiton grows, firms are looking to tap into a wider market to get ahead.
According to Bernstein research, prediction market trading volumes are on pace to reach approximately $240 billion in 2026, up about 370% from last year.
Prediction Markets Face Growing Regulatory Pushback Globally
The industry’s rapid growth has prompted some regulators take a firm stance against prediction market operators.
Spain recently opened enforcement proceedings involving Polymarket and rival operator Kalshi.
Over the past year, authorities in countries including India, Indonesia, Argentina, Brazil, Portugal and Hungary have moved to restrict access to one or more prediction market platforms.
Prediction market firms argue that their products function as markets for information and risk assessment. However, many regulators have been unconvinced.
Authorities have concluded that contracts allowing users to risk money on future outcomes fall within gambling frameworks — regardless of whether blockchain technology is involved.
At the same time, the sector continues to push for a separate regulatory approach.
Supporters contend that event contracts differ from conventional sports betting because they can serve forecasting and hedging purposes.
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Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
