Prediction market operator Polymarket is trying to reduce the use of virtual private networks (VPNs) used to access its platform, according to The Information.
Key Takeaways
- Polymarket is reportedly blocking VPN-linked IP addresses used to access its platform.
- The prediction market operator is blocked in 33 countries.
- The crackdown comes as more countries seek to limit the use of VPNs to protect minors from accessing adult-rated sites.
The company is reportedly blocking IP addresses associated with VPN services as part of a plan to enforce existing geographic restrictions more effectively.
The platform is currently restricted in 33 countries and several regions due to local regulations and international sanctions. The measures are intended to stop users from bypassing those restrictions through VPNs.
Polymarket has also reportedly started requesting identification from some customers seeking access to faster trading features. The move marks a shift from the company's previous emphasis on anonymous participation.
The reported changes come as VPN usage comes under more scrutiny around the world. Utah passed legislation aimed at preventing VPN use to bypass age restrictions on certain adult websites, and U.K. lawmakers have discussed new measures after VPN usage increased following new online age-verification requirements.
Polymarket and other prediction markets, such as rival Kalshi, have also been facing regulatory issues in the U.S. Last month, Minnesota became the first state to pass legislation banning prediction market sites, while other states have sued the platforms for offering what they claim is illegal gambling.
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White House reviews CFTC's plan for oversight
In other prediction market news, the exchanges have entered the next stage of their regulatory fight with states after the Commodity Futures Trading Commission (CFTC) filed a regulatory proposal, which the White House's Office of Management and Budget is currently reviewing.
Details have not been made public. CFTC chairman Michael Selig previously indicated the agency intends to develop rules governing prediction markets after withdrawing a proposed regulation that would have prohibited contracts tied to sports and political events.
The CFTC has argued it has exclusive authority over prediction markets, and U.S. President Donald Trump weighed in on the debate this week, stating on social media that the CFTC's authority over them should be preserved.
Former CFTC and SEC chair Gary Gensler disputed the agency's claim of authority, arguing Congress did not grant the CFTC responsibility for regulating prediction markets under the Dodd-Frank Act.
Gensler said state governments should oversee the sector and predicted that the dispute over jurisdiction could ultimately be resolved by the Supreme Court.
