Polymarket, the world's largest prediction market, is shifting from its permissionless trading model by encouraging identity verification and cracking down on VPN use. According to The Information, the company now blocks VPNs and suspicious accounts, risking suspension for bypassing geographic restrictions. Traders with large positions or rapid deposit-trade-withdraw cycles may trigger internal anti-money laundering thresholds, leading to verification requests. Those completing voluntary KYC or KYB gain perks like low-latency server access. The move follows mounting legal and regulatory pressure, including a House Oversight Committee request for KYC and geo-enforcement records by June 5. Polymarket US already requires full KYC after acquiring a CFTC-licensed exchange in 2025, following a $1.4 million CFTC settlement in 2022. Over 33 countries now face restrictions or blocks. While basic wallet-connect trading remains available for permitted international users, the trend indicates tighter controls ahead.

Key facts

• Polymarket now blocks VPNs and suspends accounts bypassing geoblocks.
• House Oversight Committee demands KYC and geo-enforcement records by June 5.
• Large traders or rapid cycles may trigger verification under AML thresholds.
• Voluntary KYC/KYB users get low-latency server access as a perk.
• Over 33 countries face full restrictions or technical blocks on Polymarket.