Polymarket Denies Mandatory KYC Claims as Beta Product Adds Temporary Checks

TLDR

• Polymarket denied claims that it is adding mandatory KYC to its existing platform.
• Josh Stevens said KYC applies only to a new beta product for selected users.
• Stevens said the beta product will not require KYC after it exits the testing phase.
• Polymarket has reportedly geoblocked users from 35 jurisdictions amid regulatory pressure.
• U.S. lawmakers and regulators are reviewing prediction markets over sanctions, gambling and insider trading risks.

Polymarket has denied claims that it is adding mandatory Know Your Customer checks to its existing prediction market platform, after reports said the company was weighing stricter identity verification amid growing regulatory scrutiny.

Josh Stevens, Polymarket’s vice president of engineering, said the company is launching a new beta product for a selected group of users and that KYC will be required only during the beta period. He said no KYC is being added to any existing part of Polymarket.

Stevens also said the new product will not require KYC once it exits beta. The clarification comes as regulators in the United States and overseas increase pressure on prediction market platforms over sanctions controls, gambling rules, and market integrity concerns.

Polymarket Clarifies KYC Reports

Reports earlier this week said Polymarket was considering mandatory identity verification as part of efforts to reduce regulatory risk. The platform has traditionally allowed users to trade through pseudonymous wallets, a structure that helped it grow during major political, economic, and geopolitical events.

Polymarket’s latest response narrows that claim. According to Stevens, identity checks are not being introduced across the existing platform. Instead, they are tied to a separate beta product that is being tested with limited users.

The distinction matters because full-platform KYC would mark a major change for Polymarket’s user model. A beta-only requirement suggests the company is testing compliance controls without changing access rules for the current platform.

Polymarket has not publicly disclosed full details of the new beta product. The company’s clarification indicates that identity verification will be temporary and limited to the beta phase.

Global Restrictions Remain in Focus

Polymarket continues to face regulatory attention in multiple jurisdictions. Reports say the platform has geoblocked users from 35 countries, including Iran, Russia, and North Korea. Other restricted markets reportedly include several European and Asian jurisdictions.

The platform’s terms of service prohibit users from using VPNs to bypass location restrictions. Regulators remain concerned that some users may still access blocked markets through location-masking tools.

Spain recently ordered internet service providers to block access to Polymarket over concerns tied to unlicensed gambling activity. Similar restrictions have been reported in India and Indonesia as governments review whether prediction markets should be treated as financial products or betting platforms.

Polymarket has also reportedly strengthened systems for detecting suspicious accounts and VPN use. These measures come as prediction markets draw more attention from regulators monitoring sanctions exposure and cross-border trading activity.

US Debate Over Prediction Markets Grows

In the United States, prediction market oversight remains a contested issue. President Donald Trump recently said the Commodity Futures Trading Commission should have exclusive authority over prediction markets.

CFTC Chair Michael Selig has supported federal oversight of event contracts and has challenged some state-level actions against platforms such as Kalshi and Polymarket. Several states argue that prediction markets should fall under gambling laws, especially when contracts involve sports, elections, or political events.

Members of the U.S. House of Representatives have also opened inquiries into Kalshi and Polymarket. Lawmakers have requested information about KYC procedures, geoblocking systems, suspicious trading detection, and safeguards against insider trading.

Polymarket has faced additional attention over reports involving geopolitical contracts and alleged use of sensitive information by traders. The platform has reportedly introduced market integrity tools, including blockchain forensics, anomaly detection, surveillance systems, and cooperation with law enforcement in selected cases.

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