Polymarket Blocks VPN Access as Global Regulators Target Prediction Markets
New York, Sunday, 31 May 2026.
As legal scrutiny intensifies across more than 30 global jurisdictions, prediction platform Polymarket is aggressively blocking VPN users and enforcing strict identity checks to navigate mounting regulatory hurdles.
Escalating Regulatory Walls and Geoblocking Tactics
On May 29, 2026, the decentralized prediction market Polymarket implemented stringent measures to block IP address ranges associated with Virtual Private Networks (VPNs) [1]. The platform is also now requiring rigorous identity verification for accounts holding large positions or engaging in rapid, high-value transaction cycles using the USDC stablecoin on the Polygon blockchain [1]. According to internal company documents, Polymarket actively blocks users from several major nations, including the United States, Russia, Iran, Germany, France, the United Kingdom, and the Netherlands [2]. Despite these geoblocking efforts, regulators have grown increasingly concerned after reports surfaced that users in restricted regions were still accessing the offshore platform utilizing VPNs, automated bots, and sophisticated routing techniques [2].
The High Cost of Bypassing Compliance
For Polymarket, navigating regulatory frameworks is not a new challenge, but the stakes are demonstrably higher in 2026. The platform previously settled with the Commodity Futures Trading Commission (CFTC) for $1.4 million in 2022 over allegations of operating unregistered binary options [1]. Following that settlement, Polymarket acquired a licensed derivatives exchange in 2025, a strategic move that mandated comprehensive Know Your Customer (KYC) compliance for its segregated operations within the United States [1]. However, rising trading volumes across prediction markets have triggered renewed U.S. probes into offshore trading access, identity verification processes, and potential sanctions risks [2].
A Broader Crisis in Betting Integrity and Digital Enforcement
Polymarket’s operational pivot underscores a wider, cross-industry struggle to maintain betting integrity and enforce digital compliance. On May 29, 2026, Kalshi filed a federal lawsuit against the state of Minnesota to challenge a local law criminalizing prediction markets, aligning its legal strategy with an existing CFTC lawsuit that argues the state statute violates the U.S. Constitution [1]. Simultaneously, the traditional sports world is battling its own technological betting threats. Just a day earlier, on May 28, 2026, an advisory body for cricket’s Indian Premier League (IPL) banned players and staff from wearing smart glasses in restricted match-day areas to prevent real-time communication with off-field bookies [3].