Polymarket scrutinizes user KYC as election nears

Polymarket is keeping a close eye on its biggest bookmakers to ensure users do not place bets on the platform ahead of the US presidential election.

Polymarket, Crypto’s largest betting venue, has begun the process of re-verifying credentials for high rollers on its Polygon-based service, Bloomberg reported on Tuesday, October 22. The company, led by founder Shayne Coplan, is imposing this geoblock on American users. New controls on know your customer details.

Despite accounting for over 95% of the on-chain betting market, Polymarket is not available to users in the US due to regulations. But the platform has become almost synonymous with the US presidential election, taking in over $2.1 billion in bets on whether former President Donald Trump or Vice President Kamala Harris will win the White House.

A lot of talk has erupted around prediction markets like Polymarket and Kalshi this US election cycle, with many suggesting that the results could either support or slightly hinder cryptocurrency adoption depending on the winners at the federal and state level.

These platforms allow users to bet on potential outcomes by purchasing event shares, leveraging blockchain technology to process transactions, and making payouts to bettors.

Many people view betting data as an indicator of social sentiment because it primarily involves money and suggests users back up their beliefs with real cash and cryptocurrency. But others question the authenticity of chain betting data and its relevance to real-world events such as elections.

However, prediction markets have experienced a multi-month uptrend this year, rising over 560% in the third quarter of 2024, according to the 0xPPL research report.