Polymarket is Blocking VPN Access With KYC: Should You Worry?

Polymarket is encouraging more traders to verify their identities and tightening enforcement against VPN use, marking a clear shift from its long-standing permissionless trading model.

The world’s largest prediction market faces growing sanctions, legal, and regulatory pressure on its operations. House Oversight Committee investigators have requested KYC and geographic enforcement records by June 5.

What Changes for Everyday Users

According to a report from The Information, the company is pushing traders toward voluntary identity checks while clamping down on suspicious accounts.

Basic wallet-connect trading still works for most international users, who can deposit USD Coin (USDC) on Polygon without uploading personal documents.

That permissionless access is no longer guaranteed across the board. Polymarket now strictly polices VPN use, and accounts that bypass IP-based geoblocks risk suspension or permanent bans.

Traders running seven-figure positions, or rapid five-figure deposit-trade-withdraw cycles, have been documented triggering verification under internal anti-money laundering thresholds.

Users who complete a voluntary KYC or KYB form gain perks. These include direct co-location on Polymarket’s primary servers, which lowers latency for active traders.

Regulatory Pressure is Rising

The international platform remains separate from Polymarket US. The US arm requires full KYC since Polymarket acquired a CFTC-licensed exchange in 2025.

The shift followed a $1.4 million CFTC settlement in 2022 over unregistered binary options.

More than 33 countries now face full restrictions or technical blocks. These range from OFAC-sanctioned states to jurisdictions with strict gambling rules.

Stronger compliance reduces the threat of shutdowns, blocked withdrawals, and follow-on regulatory action. Privacy-focused traders, however, lose some of what made the platform distinctive.

Therefore, the message to international users is simple. Trade through a wallet in permitted countries, avoid VPN workarounds, and expect identity requests if activity stands out.

The trend points toward tighter controls, even where the front door stays open.