Polymarket Tightens KYC, Blocks VPNs After Oversight Probe

Polymarket has begun urging more traders to verify their identities while tightening enforcement around VPN use and blocking some IP addresses, following a request from House Oversight Committee investigators for KYC and geolocation records by June 5.

The platform has shifted from a permissionless approach by encouraging voluntary identity checks and increasing action on suspicious accounts. Most international users can still trade via wallet-connect and deposit USD Coin (USDC) on the Polygon network without uploading documents, but that access is no longer guaranteed for all customers. Polymarket now enforces IP-based geoblocking more strictly; accounts that bypass country limits using VPNs face suspension or permanent bans.

Polymarket’s internal anti-money-laundering rules require verification when account activity meets certain thresholds. Company records show that holding positions worth seven figures or rapid deposit-trade-withdraw cycles in the five-figure range trigger additional identity checks. Customers who complete voluntary KYC or KYB forms receive operational benefits, including optional co-location on the platform’s primary servers to reduce latency for high-frequency or large-scale traders.

Polymarket operates an international platform separate from Polymarket US. The U.S. arm requires full identity checks after the company acquired a CFTC-licensed exchange in 2025. The firm’s regulatory history includes a 2022 settlement with the Commodity Futures Trading Commission for $1.4 million over unregistered binary options.

More than 33 countries now face full restrictions or technical blocks on Polymarket, including jurisdictions subject to U.S. sanctions and states with strict gambling rules. The company has stated that stronger compliance reduces the risk of forced shutdowns, blocked withdrawals or additional regulatory action. The tighter rules also remove some privacy-focused ways traders previously accessed the market.

Polymarket is advising international traders to operate from permitted countries, avoid VPN workarounds and expect identity requests if their trading patterns trigger internal checks. The company is continuing to adjust enforcement as it responds to regulatory inquiries.