Polymarket is pushing users to complete identity verification while cracking down harder on VPN access. This marks a significant shift from the platform’s previous model, which allowed trading for years with minimal restrictions or checks.
The world’s largest prediction market now faces mounting pressure from regulators and U.S. authorities. The House Oversight Committee has demanded the platform provide documents related to KYC checks and geofencing systems by June 5, according to recent reports.
What’s changing for regular users
Polymarket is increasingly pushing traders to verify their identity voluntarily and tracking suspicious platform activity more strictly. For now, most users outside the U.S. can still access basic trading through wallet connections. Users can deposit USDC on the Polygon network without uploading documents or completing full KYC.
However, the era of unrestricted trading is ending. Polymarket now takes a much stricter approach to VPN usage. Accounts that bypass geoblocking by changing IP addresses may face restrictions or permanent bans.
The platform particularly targets accounts with large trading volumes, including:
- Traders with positions worth millions of dollars
- Users who quickly cycle through large deposits, trades, and withdrawals
- Accounts that trigger AML threshold alerts
Users who complete voluntary KYC or KYB verification receive benefits like direct connection to main Polymarket servers, reducing latency for active traders.
Regulatory pressure mounts
The international version still operates separately from Polymarket US. The American division requires full KYC after Polymarket acquired an exchange with a CFTC license in 2025.
This regulatory compliance isn’t new territory for Polymarket. In 2022, the platform paid $1.4 million following CFTC claims over markets authorities considered unregistered binary contracts. The service is now unavailable or partially blocked in more than 30 countries, including jurisdictions under OFAC sanctions and regions with strict betting regulations.
The end of an era
For Polymarket, stronger compliance reduces risks of regulatory blocks, withdrawal problems, and new claims from authorities. But many users see this differently.
One main driver of Polymarket’s popularity was the ability to trade without excessive checks and bureaucracy. Now the rules are tightening significantly. Users receive clear signals: don’t use VPNs, log in only from permitted countries, and prepare for document checks if account activity appears suspicious.
The prediction market appears to be following the same path as major crypto exchanges, where anonymity and freedom decrease each year. This shift reflects broader industry trends as regulators worldwide increase oversight of cryptocurrency and prediction market platforms.