Bitbank Enforces Gambling Law
Japanese Crypto Exchange Bitbank Warns Account Freezes for Polymarket Users Over Gambling Law Concerns
Anonymous
Key Points
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Bitbank’s notice grounded its risk-avoidance stance in Japan’s Penal Code: it cited Article 185’s definition of gambling as staking value on an uncertain real-world outcome, and said crypto-settled event contracts “do not qualify” for the narrow exception (which covers only trivial, non-monetary social bets).
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Bitbank also pointed to guidance from Japan’s National Police Agency stating that accessing/participating in online gambling operated legally abroad remains a crime for Japanese residents—“regardless of how a platform labels its product.”
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Bitbank identified its regulatory registration details in the notice, saying it is registered with Japan’s Kanto Local Finance Bureau as crypto exchange operator No. 00004.
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Polymarket is already restricting access in Japan via geoblocking and, according to Bitbank, its Terms of Service explicitly prohibit VPN workarounds (treating them as a violation).
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Polymarket is lobbying for regulatory approval with a stated target timeline: Bitbank said Polymarket is aiming for government authorization around 2030.
Japan's Bitbank has warned customers it will freeze accounts linked to prediction market platforms, naming Polymarket directly. The exchange said using such services from Japan for financial gain could count as illegal gambling under Japan's Penal Code, according to Bitcoin News.
Suspended users would lose access to everything: login, crypto trading, and all yen and crypto withdrawals. Bitbank said it will not be liable for any damages caused by the freezes, according to MEXC.
Japan's Penal Code Is the Weapon Bitbank Is Using
Bitbank grounded its notice in Article 185 of Japan's Penal Code. That law defines gambling as staking anything of value on an uncertain real-world outcome. Crypto-settled event contracts — the core product of platforms like Polymarket — fall squarely under that definition, Bitcoin News reported.
A narrow exception exists for trivial, non-monetary social bets. Bitbank said Polymarket trades do not qualify. The exchange also cited Japan's National Police Agency, which has stated that using foreign gambling platforms from within Japan is a crime — regardless of what the platform calls its product, according to Kryptonews.
Polymarket Already Blocked Japan but Users Found Workarounds
Polymarket has already geoblocked Japanese IP addresses. But Bitbank's notice targets users who bypass that block with a VPN. Polymarket's own Terms of Service ban VPN use. Bitbank is treating that violation as a red flag for high-risk behavior, according to MEXC.
Bitbank is registered with Japan's Kanto Local Finance Bureau as crypto exchange operator No. 00004. That makes it one of Japan's most tightly regulated exchanges. Following 2023 Travel Rule amendments, registered exchanges must monitor where every crypto transfer goes — making prediction market activity detectable, according to Bitcoin News.
Polymarket Is Betting on a 2030 Regulatory Fix
Polymarket is not retreating. The platform appointed a Japan representative and is lobbying for a new regulatory category under Japan's Financial Instruments and Exchange Act. Its target for formal government authorization is 2030, according to Kryptonews.
That is a long wait. In the meantime, the platform's total trading volume has reached $88.6 billion as of June 2026. Monthly volume hit $10 billion in March 2026 alone. The stakes for both sides are enormous, MEXC reported.
South Korea May Block Polymarket at the Internet Level
Japan is not alone. South Korea's police launched a criminal investigation into domestic Polymarket users after its local elections in June 2026. Prosecutors recorded over $52 million in wagers from South Korean IP addresses during that single election period, according to Bitcoin News.
If South Korea rules Polymarket illegal, the Korea Communications Standards Commission could order ISP-level blocking — shutting off the site at the network level. Analysts expect Japan's government to consider a similar approach if lobbying efforts fail by 2030, according to MEXC.
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