Polymarket scrutinizes user KYC as election nears

Polymarket is keeping a close eye on its biggest bettors to ensure users aren’t placing wagers on the platform ahead of the U.S. presidential elections.

Crypto’s largest betting venue, Polymarket, has kickstarted a credential re-verification process for high rollers on its Polygon-based service, Bloomberg reported Tuesday, Oct. 22. The company, led by founder Shayne Coplan, is enforcing this geoblock on American users with new checks on know-your-customer details.

Despite accounting for over 95% of the on-chain betting market, Polymarket isn’t available to U.S. users due to regulations. Yet, the platform has become nearly synonymous with the U.S. presidential elections, having taken in over $2.1 billion in bets on whether former President Donald Trump or Vice President Kamala Harris will win the White House.

Much chatter has erupted around prediction markets like Polymarket and Kalshi this U.S. election cycle, with many speculating that the results could either bolster or slightly hinder cryptocurrency adoption, depending on the victors at the federal and state levels.

These platforms allow users to bet on potential outcomes by purchasing event shares, leveraging blockchain technology to execute trades and settle payouts for bettors.

Many view betting data as a social sentiment indicator, primarily because it involves money, suggesting that users back their convictions with actual cash and crypto. Others, however, question the authenticity of on-chain betting data and its relevance in real-world events like elections.

Nonetheless, prediction markets have experienced a multi-month uptrend this year, ballooning over 560% in Q3 2024, according to a 0xPPL research report.