Prediction market platform Polymarket is considering user verification measures due to pressure from global regulators regarding sanctions violations and other legal risks. According to The Information, the company is discussing the introduction of mandatory verification requirements to align its operations with Know Your Customer (KYC) standards. This is reported by Cointelegraph.com reports.
This step comes at a time when access to the platform is restricted or banned in many countries due to concerns over illegal gambling. Currently, Polymarket has "geoblocked" 35 countries, including Iran, Russia, and North Korea, which are under sanctions due to military conflicts, prohibiting residents of these regions from placing orders.
Currently, Polymarket users can operate under pseudonyms, which allows them to keep their identity secret. However, this situation creates legal risks when betting on controversial contracts. For example, it was revealed that an individual who won 400,000 USD using confidential information on a bet regarding the arrest of Venezuelan President Nicolás Maduro was a U.S. military member.
U.S. President Donald Trump supported on his Truth Social platform that the authority to oversee prediction markets should belong solely to the Commodity Futures Trading Commission (CFTC). His statement aligns with the position of CFTC Chair Michael Selig. It is worth noting that Donald Trump Jr. is a strategic advisor to the Kalshi platform and an advisor to Polymarket.
After members of the U.S. House of Representatives launched an investigation into the Kalshi and Polymarket platforms, the president's support for the CFTC came into the spotlight. Lawmakers are concerned about the risk of elected officials trading using insider information. Currently, there are several contracts on the Polymarket platform regarding the war between the U.S.-Israel and Iran.
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