Polymarket Faces US Probe and Global KYC Push After Compliance Criticism

Prediction‑market platform Polymarket is tightening its know‑your‑customer (KYC) procedures and blocking users from roughly 33‑35 jurisdictions, including the United States, Russia, France, the United Kingdom, Germany, Iran and the Netherlands. The move follows heightened regulator scrutiny over the platform’s offshore operations, which historically allowed pseudonymous access and VPN use to bypass geoblocking. Spain ordered internet providers to block the site, and similar actions have occurred in Indonesia and India.

The U.S. House Committee on Oversight and Government Reform, chaired by Rep. James Comer, has launched a probe into Polymarket and rival Kalshi, issuing letters demanding details on identification processes and insider‑trading mitigation plans. Kalshi’s head of enforcement, Robert J. DeNault, criticized Polymarket’s compliance, stating “Enough is enough… If Polymarket is serious about stopping this, either bring all operations into compliance (which starts with KYC) or shut down the offshore exchange.” Polymarket’s VP of Engineering, Josh Stevens, countered that no KYC is being added to the existing platform.

Polymarket says the new rules, introduced in March 2026, include enhanced market‑integrity measures, blockchain forensics and anomaly detection, aiming to reduce exposure to OFAC sanctions and anti‑money‑laundering violations while preserving its ability to operate under CFTC oversight in the United States.