Polymarket will require users to complete know-your-customer (KYC) verification, but only for its beta product rather than the existing platform, the prediction market operator clarified as it grapples with mounting regulatory scrutiny.
The decentralized prediction market platform announced the KYC requirement in response to compliance risks, according to reporting from The Information and Cointelegraph. The distinction between the beta version and current operations suggests Polymarket is pursuing a phased compliance approach, implementing stricter identity verification measures for new products while maintaining the existing platform's operational structure.
The move underscores intensifying regulatory pressure on decentralized finance platforms in the United States. Polymarket, which operates markets for event outcomes across politics, sports, and economics, has faced prior regulatory concerns regarding its compliance with U.S. derivatives and gambling laws. By limiting KYC requirements to beta features, the platform appears to be testing regulatory boundaries while preserving backward compatibility with its current user base.