Polymarket Cracks Down on VPN Users
Polymarket is aggressively clamping down on users attempting to bypass its location restrictions through Virtual Private Networks (VPNs).
According to an investigative report by The Information, the platform is actively targeting masked IP addresses and implementing strict identity checks to ward off mounting legal risks.
This technical crackdown comes as prediction markets face unprecedented scrutiny from international regulators who increasingly view platforms like this one as unlicensed gambling.
By taking a harder line on location spoofing, Polymarket is attempting to insulate itself from severe regulatory penalties. However, the tighter controls risk alienating a crypto-native audience that deeply values anonymity.
The Geography of Exclusion: Over 30 Banned Countries
The heightened security protocols arrive on the heels of a massive wave of international bans targeting prediction markets. Most recently, Spain directed major internet service providers to block both Polymarket and its U.S.-regulated competitor Kalshi for operating without the proper local gambling licenses.
Spain is far from an isolated case. Globally, more than 30 jurisdictions have prohibited, or strictly restricted, citizens from trading on Polymarket.
Major economies including Indonesia, Brazil, Argentina, India, France, Belgium, Australia, and the United Kingdom have all taken official action to limit the platform’s reach.
As the list of restricted zones continues to expand, relying strictly on basic IP geoblocking has proven insufficient for Polymarket, forcing the platform to actively hunt down VPN users to maintain legal compliance.
The Legal Evolution from the U.S. to Global Markets
Polymarket’s current global defensive strategy mirrors its previous battles in the United States. Following a $1.4 million settlement with the Commodity Futures Trading Commission (CFTC) in 2022 for offering unregistered binary options, Polymarket effectively geoblocked all American users from its main platform.
To legally re-enter the lucrative U.S. market, the company acquired a fully licensed domestic derivatives exchange in 2025, keeping its heavily regulated, KYC-compliant U.S. arm strictly segregated from its international operations.
Historically, crypto exchanges that turned a blind eye to VPN workarounds have faced catastrophic legal consequences.
Regulatory giants like Binance and KuCoin both faced heavy federal charges in the U.S. for knowingly allowing restricted citizens to trade without proper identity checks, with regulators citing internal communications where platforms explicitly told users how to use VPNs.
By aggressively shutting down VPN access now, Polymarket’s management is explicitly attempting to avoid a similar corporate fate as global regulators tighten their grip.
Navigating Systemic Platforms Risks: From Leaks to Insider Trading
The platform’s scramble to lock down its perimeter comes at a time when prediction markets are fighting fires on multiple fronts.
Beyond external regulatory pressure regarding location, platforms like Polymarket are increasingly forced to police internal structural integrity. The threat of manipulation and unfair market advantages has cast a long shadow over high-volume betting pools.
Just last month, a Google software engineer was charged with using confidential corporate search data to secure an illegal $1 million haul on Polymarket by betting on highly specific trending search outcomes.
Furthermore, popular entertainment markets have repeatedly faced distortion from alleged insider leaks, particularly surrounding major television show spoilers like Survivor.
As Polymarket transitions from a niche Web3 project into a mainstream financial layer, the dual challenge of stopping location fraud via VPNs and preventing market abuse like insider trading will ultimately dictate whether the platform can survive long-term scrutiny.