Polymarket is increasingly pushing users to complete verification and at the same time is cracking down harder on access via VPN. For the platform, this is already a noticeable departure from its previous model, where trading was possible for a long time with almost no restrictions or checks.
The largest prediction market is now facing growing pressure from regulators, sanctions, and U.S. authorities.
According to media reports, the House Oversight Committee has demanded that the platform provide documents related to KYC checks and the geofencing system by June 5.
What Changes for Regular Users
As The Information writes, Polymarket is increasingly pushing traders to voluntarily verify their identity and is also tracking suspicious activity on the platform more strictly.
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For now, for most users outside the U.S., basic trading via wallet connection remains available. Users can still deposit USDC on the Polygon network without uploading documents or completing full KYC.
But the model where you could trade freely with almost no checks or restrictions is gradually becoming a thing of the past. Now Polymarket is much stricter about the use of VPN. Accounts that bypass geoblocking by changing their IP may face restrictions or even receive a permanent ban.
According to sources, checks are increasingly targeting accounts with large volumes. This refers to traders with positions worth millions of dollars or users who quickly cycle through large deposits, trading, and withdrawals.
For such cases, AML threshold triggers are already operating within the platform.
At the same time, users who voluntarily complete KYC or KYB receive additional benefits. For example, access to direct connection to the main Polymarket servers, which reduces latency for active traders.
Regulatory Pressure Continues to Grow
The international version of the platform still operates separately from Polymarket US. The American division already requires full KYC after Polymarket acquired an exchange with a CFTC license in 2025.
The company did not come to this decision lightly. Polymarket’s regulatory problems did not start yesterday. Back in 2022, the platform had to pay $1.4 million after claims from the CFTC over markets that U.S. authorities considered unregistered binary contracts.
Now the service is already unavailable or partially blocked in more than 30 countries. The restrictions apply not only to countries under OFAC sanctions, but also to jurisdictions where betting and similar online platforms are strictly regulated.
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For the platform itself, strengthening compliance looks like a way to reduce the risks of blockages, withdrawal problems, and new claims from regulators.
But for some users, the situation looks different. For the platform itself, strengthening compliance looks like an attempt to proactively reduce risks: fewer chances of new claims from regulators, blockages, or problems with payments.
But many users see it quite differently. One of the main reasons for Polymarket‘s popularity was precisely the ability to trade with almost no checks and unnecessary bureaucracy.
Now the rules are becoming noticeably stricter. Users are being given increasingly clear hints: do not use VPN, log in only from permitted countries, and be ready for document checks if account activity seems suspicious.
It seems that the prediction market is gradually starting to move in the same direction as major crypto exchanges, where anonymity and freedom are decreasing every year.
