Bitbank to suspend accounts linked to Polymarket

A major Japanese cryptocurrency exchange announced on June 15, 2026, that it will suspend user accounts found conducting transactions with decentralized prediction markets, citing potential violations of the nation's strict gambling laws. The move by Bitbank targets services like Polymarket and underscores the legal risks such platforms face in Japan even as they seek regulatory approval for future operation.

In a formal notice, Bitbank stated it will suspend any account where deposits or withdrawals connected to prediction market services are detected. A suspended account would be fully frozen, preventing the user from logging in, moving funds, converting assets, or withdrawing Japanese yen. The exchange said it bears no liability for any damages resulting from these measures, framing the action as necessary to comply with the law and protect users from legal exposure.

Japanese law defines gambling under its Penal Code as staking something of value on an uncertain real-world outcome, with only a narrow exception for trivial, non-monetary social bets. According to legal analysis, crypto-settled event contracts do not qualify for that exception. The National Police Agency has...