According to Bitbank’s June 15 notice, its customers face account restrictions if the exchange identifies deposits or withdrawals linked to prediction market services. The limitation can be applied to some essential account features. Users may have lost access to their logins, crypto deposits, withdrawals, and exchange services. Bitbank said that it would not accept liability for losses caused by account limitations.
The company did not say the notice followed a new enforcement action. It framed the warning as a compliance measure under existing legal and regulatory obligations. This suggests that local crypto companies may take action before regulators issue a specific framework for prediction markets.
Polymarket’s Japan Problem Is Still Unsettled
Japan has been listed as one of the blocked countries for Polymarket. According to the firm, restricted locations are added because of the following:
- International sanctions;
- Local financial regulations;
- Gambling and prediction market laws;
- AML and KYC rules.
On the other hand, there have been indications from the firm about its intentions to explore Japan. Reports in May said Polymarket had appointed Mike Eidlin, head of Japan at Jupiter, to lead its local effort as the company seeks approval to operate in Japan by 2030.
This leaves a clear gap between Polymarket’s long-term plans and current access to the Japanese market. Legal betting in Japan is generally limited to specific public sports, public lotteries, and Japanese Football Pools under special laws.
Crypto Platforms Move Into a Gatekeeper Role
The Bitbank announcement also moves focus away from prediction market operators to payment systems. An operator can block Japanese users on its own platform, but crypto transfers can still create compliance exposure for local exchanges.
Bitbank’s approach is to cut the risk at the account level rather than wait for a separate prediction market rulebook. There is a lesson for individual users as well. A transfer connected to a prediction market may affect their whole exchange account, not only the external platform involved.
The case shows that exchanges can become an enforcement layer even before a dedicated prediction market framework is in place. Licensed crypto companies can manage a great deal on their own through transaction monitoring and user restrictions.
Bottom Line
Polymarket has pursued regulated routes elsewhere, including the $112 million acquisition of QCEX in the United States. Japan is a different test. It is not enough to secure long-term political interest. The company also has to convince local financial and crypto intermediaries that outcome-based contracts will not expose them to gambling enforcement. Bitbank’s notice shows that this confidence is still missing.
