Polymarket is increasing KYC verification for traders amid concerns about OFAC sanctions exposure and weak geoblocking. Spain ordered ISP blocks against Polymarket in May 2026, and similar restrictions have occurred in Indonesia and India. U.S. House lawmakers sent a letter demanding details on KYC enforcement and suspicious trading detection. The platform is blocking suspicious accounts and cracking down on VPN usage used to bypass geographic restrictions. Completing KYC forms can provide perks such as direct co-location for reduced trading latency. Polymarket uses a dual structure: an offshore international platform with wallet-based access and a U.S. arm, Polymarket US, operated by QCX LLC under CFTC oversight with full identity verification. The international tier blocks users from roughly 33 to 35 jurisdictions, and terms prohibit VPNs or bypass tools, yet VPN access is believed to make geoblocking porous.
"Polymarket is reportedly pushing KYC verification on traders amid OFAC sanctions exposure and porous geoblocking as of May 2026. Spain ordered ISP blocks against Polymarket in May 2026, joining a growing list of 33-plus restricted jurisdictions. U.S. House lawmakers sent Polymarket a letter in May 2026 demanding answers on KYC enforcement and suspicious trading detection. The platform is blocking suspicious accounts and cracking down on VPN usage, which traders in restricted jurisdictions have long used to sidestep geoblocking controls."
"Users who complete know-your-customer, or KYC, forms may gain access to perks such as direct co-location for reduced trading latency. Polymarket operates on a dual structure. Its offshore international platform has historically offered wallet-based access, a setup that drove billions in trading volume during the 2024 U.S. elections. Its domestic arm, Polymarket US, is operated by QCX LLC under CFTC oversight as a Designated Contract Market and already requires full identity verification for American users."
"The gap between those two tiers is what regulators and lawmakers are now focused on. The platform currently blocks users from roughly 33 to 35 jurisdictions, including the U.S., Russia, France, the United Kingdom, Germany, Iran, and the Netherlands. Its terms of service explicitly prohibit VPNs or other tools from bypassing those restrictions. Despite that, it is believed that cheap VPN access has made geoblocking porous, leaving Polymarket exposed to potential OFAC sanctions violations and anti-money laundering failures."
"This month, Spain ordered internet service providers to block access to Polymarket over unlicensed gambling concerns. Similar actions have taken place in Indonesia and India. A U.S. House oversight letter, also submitted this month, asked Polymarket to detail its KYC enforcement, geoblocking controls, and systems for detecting suspicious trading activity."
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