Polymarket Plans Japan Expansion, Names Regional Representative

TLDR

• Polymarket has appointed a regional representative to lead its expansion efforts in Japan.
• The company aims to secure regulatory approval to operate in Japan by 2030.
• Japan is currently listed as a restricted jurisdiction on Polymarket’s platform due to regulatory requirements.
• The country’s gambling laws pose challenges for prediction market platforms such as Polymarket.
• Polymarket’s monthly trading volume declined to $9 billion in April from $10.57 billion in March.

Polymarket is preparing to expand into Japan and has appointed a local representative, according to a Bloomberg report. The crypto-based prediction market platform aims to secure regulatory approval in the country by 2030. The move comes as Polymarket seeks new growth opportunities while facing regulatory scrutiny in multiple regions.

Polymarket Targets Japan Expansion Amid Regulatory Hurdles

Bloomberg reported that Polymarket views Japan as a key growth market for its prediction services. The company has appointed Mike Eidlin to lead its Japan efforts.

Eidlin has reportedly been working as head of Japan at Jupiter before this appointment. He will now oversee Polymarket’s regional strategy and regulatory engagement.

Polymarket currently blocks users in Japan due to “regulatory requirements and compliance with international sanctions.” The platform lists Japan among its restricted jurisdictions on its official website.

Japan’s laws present challenges for prediction markets and crypto-based betting platforms. The country’s Penal Code prohibits habitual gambling with penalties of up to three years in prison.

Operating a gambling business can result in imprisonment between three months and five years. However, exceptions exist for state-approved activities such as lotteries and horse racing.

The pachinko industry operates under a legal gray area using arcade-style systems. This framework may influence how regulators assess new market entrants like Polymarket.

Global Scrutiny and Market Trends Affect Polymarket Strategy

Polymarket’s expansion push follows a decline in its trading activity. The platform recorded $9 billion in monthly volume in April, down from $10.57 billion in March.

This marked its first monthly drop since August last year, according to The Block’s data dashboard. At the same time, rival Kalshi reported rising volumes during April.

Kalshi’s trading volume increased to $14.81 billion from $13 billion in March. The divergence highlights competitive pressure in the prediction market sector.

Polymarket has also returned to the United States through the acquisition of QCEX. It now operates Polymarket US under a regulated derivatives framework.

The U.S. entity currently runs at limited capacity while engaging with the Commodity Futures Trading Commission. The company aims to restore broader operations in the country.

Regulators continue to scrutinize Polymarket across several jurisdictions. U.S. state regulators have taken enforcement actions against its sports-related contracts.

The CFTC and the Department of Justice recently challenged a Minnesota law banning prediction markets. Authorities in South Korea are also reviewing whether the platform hosts illegal gambling content.

India has already blocked access to Polymarket and is considering similar action against Kalshi. These developments show ongoing regulatory pressure as Polymarket pursues international expansion.

The post Polymarket Plans Japan Expansion, Names Regional Representative appeared first on CoinCentral.