Polymarket Tightens ID Checks Amid Sanctions Pressure Growth

• Polymarket tightens ID checks as regulators target sanctions gaps and offshore trading access risks.
• VPN use and routing tricks keep exposing gaps in Polymarkets geo-blocking enforcement system.
• Rising prediction market volumes trigger U.S. probes into trading, identity checks, and compliance.

Polymarket is tightening identity checks as regulators step up pressure on prediction markets over sanctions risks and offshore access concerns. The platform has come under closer scrutiny after reports showed users in restricted countries still managed to access markets using VPNs, bots, and other workarounds.

According to The Information report, company documents show that Polymarket blocks users from countries including the United States, Russia, Iran, Germany, France, the United Kingdom, and the Netherlands.

However, enforcement concerns continue growing as some users reportedly bypass those restrictions through indirect routing methods. Polymarket‘s developer guidelines state that “orders submitted from blocked regions will be rejected,” signaling that location monitoring now plays a central role in the platform’s compliance strategy.

Prediction Markets Face Regulatory Heat

Prediction markets have increased in popularity since mid-2025 as traders poured billions into bets tied to elections, sports, cryptocurrencies, and global events.

A report from Pew Research Center showed combined monthly trading volume on Polymarket and Kalshi jumped from less than $5 billion in September 2025 to about $24 billion by April 2026. That figure now exceeds average monthly wagers placed through legal U.S. sportsbooks during 2025.

Increased scrutiny from regulatory agencies and lawmakers also became imminent due to fast expansion. Sports markets occupied the majority of trading volume on Kalshi, accounting for nearly 80% since July 2024.

Election Bets Drive U.S. Regulatory Scrutiny

Political betting fueled much of Polymarkets expansion, accounting for roughly 32% of total activity during the same period. Trading activity surged even further during the 2024 U.S. presidential election, when prediction markets became heavily tied to political speculation and public sentiment.

As a result, Washington officials now want closer oversight of how these platforms operate. The United States House Committee on Oversight and Government Reform recently launched investigations into Polymarket and Kalshi over concerns tied to insider trading and restricted market access.

Chair James Comer requested internal records from Polymarket CEO Shayne Coplan and Kalshi CEO Tarek Mansour, seeking details about suspicious trading detection, customer identity checks, and geographic compliance controls.

Related: Britain Targets Crypto Firms Linked to Russian Financial Operations

Surveillance and Court Losses Raise Stakes

In April, Polymarket deepened its compliance push by partnering with Chainalysis to monitor trading activity on-chain for signs of insider trading and manipulation. The company said blockchain transparency could “be harnessed to set a new public standard for market integrity.” It also added that the system helps generate blockchain-based evidence for fraud investigations and suspicious trading patterns.

Additionally, Polymarket tightened its insider trading rules across both its decentralized platform and its regulated U.S. exchange. Chief Legal Officer Neal Kumar said, “Markets thrive on clarity.” He added, “These rule enhancements make our expectations abundantly clear for every participant across both platforms.”

Today we‘re publishing new market integrity rules across our CFTC-regulated US exchange & DeFi platform — making clear what’s prohibited, how we enforce rules, & how to report suspicious activity.