Polymarket tightens KYC and VPN checks amid sanctions and legal scrutiny
Polymarket is intensifying identity checks and cracking down on VPN access as sanctions and legal pressure on the crypto-native prediction market mount, according to multiple reports published May 27-28. The platform has begun asking some traders for government identification and is stepping up KYC verification, though Polymarket executive Josh Stevens said the checks apply only to early beta access and not the existing main platform. The moves come amid broader U.S. regulatory scrutiny of offshore prediction markets, OFAC sanctions risks, and geoblocking gaps. Kalshi publicly criticized Polymarket over alleged compliance failures, underscoring tension between regulated and unregulated platforms. No timeline or full implementation details have been disclosed.
Polymarket's beta KYC pilot puts it on a collision course with its own pseudonymous trader base if Stevens' distinction collapses under regulator pressure. Any permanent identity mandate would gut the platform's core crypto-native value proposition while Kalshi lobbies Congress for exactly that compliance gap to be closed.