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Polymarket in Japan (2026) | Accessible but Legal Grey Area — How to Use & Regulations

Polymarket is not blocked in Japan but gambling laws create legal uncertainty. Full guide on how Japanese users access Polymarket, buy USDC, and the regulatory landscape.

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Polymarket is technically accessible in Japan — the platform does not geoblock Japanese IP addresses. However, Japanese gambling laws create legal uncertainty for participants. Japan has one of the world’s strictest — and most mature — crypto regulatory frameworks, and prediction markets fall into an unaddressed grey area.

Japan is not on Polymarket’s list of geoblocked countries. The platform is fully accessible from Japanese IP addresses. Japanese users can view markets, deposit, and trade.

However, the real constraint is domestic law, not Polymarket’s geoblocking:

  • Japanese gambling statutes broadly prohibit wagering from within Japan, even when the operator is overseas
  • The National Police Agency has warned that online gambling from Japan is criminal regardless of where the platform is based
  • Prediction markets have not been specifically classified by any Japanese regulator

Japan’s approach to online gambling is strict but creates an ambiguous situation for prediction markets:

Gambling Law

  • Japanese law prohibits most forms of gambling (the Penal Code makes gambling a criminal offence)
  • Exceptions exist for public racing (horse, boat, bicycle, motorcycle), lottery, and sports betting through authorized channels
  • Online gambling from Japan is criminal regardless of whether the operator is based overseas

Why Polymarket Isn’t Blocked

  • The FSA has not issued specific guidance on prediction markets
  • Prediction markets fall into a regulatory gap — they’re not clearly gambling, securities, or a financial product under current law
  • One legal analysis identifies three possible classifications: (a) illegal gambling, (b) a regulated financial product, or (c) a “points and data” product that mimics forecasting without crossing into cash betting
  • No enforcement action has been taken against Polymarket or its Japanese users

The FSA’s Priorities

The FSA is focused on a major crypto regulatory overhaul that could eventually affect prediction markets:

  • Moving crypto from PSA to FIEA — reclassifying crypto from the Payment Services Act to the Financial Instruments and Exchange Act (the same framework governing securities)
  • 105 major digital assets will be reclassified as “financial products”
  • Insider trading prohibitions being introduced for crypto
  • Exchange liability reserves mandated after the $305M DMM Bitcoin hack
  • Spot crypto ETFs planned by 2028 under a multi-year roadmap

Prediction markets are not on the FSA’s immediate agenda, but if prediction markets were ever classified as financial instruments rather than gambling, they could potentially become legal under this new framework.

Domestic Prediction Market Activity

Despite the legal uncertainty, Japan has some domestic prediction market activity:

  • Gumi / Gc Labs announced plans in October 2025 to build an AI + blockchain prediction market, aiming for a “fair, transparent, and compliant” model. No launch date set.
  • POYP operates a points-based prediction service that deliberately avoids cash wagering to stay outside gambling law — similar in concept to pachinko’s indirect prize-exchange model.

How to Deposit from Japan

Japan has one of the world’s most mature crypto exchange ecosystems — and buying USDC just got much simpler.

The Direct Route: SBI VC Trade

In March 2025, SBI VC Trade became the first and only platform in Japan licensed to trade USDC. This created a direct JPY-to-USDC on-ramp that didn’t previously exist. SBI VC Trade also launched a USDC lending service in March 2026 offering 10% annual interest.

Circle and SBI Holdings established a joint venture in August 2025 to promote USDC adoption in Japan. Additional exchanges (Binance Japan, bitbank, bitFlyer) have announced plans to list USDC, but timing is unconfirmed as of March 2026.

Step 1: Buy USDC

ExchangeJPY DepositsFSA RegisteredUSDC DirectNotes
SBI VC TradeBank transferYesYesOnly licensed USDC distributor in Japan. Also absorbed DMM Bitcoin users.
bitFlyerBank transferYesPlannedLargest Japanese exchange (39 crypto assets)
CoincheckBank transferYesNoAcquired by Monex Group, strong retail base
GMO CoinBank transferYesNoFast JPY deposits/withdrawals
bitbankBank transferYesNo#1 for spot altcoin trading volume

Note on DMM Bitcoin: DMM Bitcoin was hacked for $305 million in May 2024 (attributed to North Korean hackers). It shut down in March 2025 and transferred all customer accounts to SBI VC Trade. This incident prompted the FSA to mandate exchange liability reserves.

If using a non-USDC exchange: Buy BTC or ETH, transfer to a platform that supports USDC swaps, then swap to USDC. The SBI VC Trade route is significantly simpler.

Step 2: Transfer USDC to Polymarket

  1. Go to Deposit on Polymarket
  2. Select Use Crypto and copy your deposit address
  3. Send USDC from SBI VC Trade to the Polymarket address
  4. Choose Polygon for the lowest fees ($3 minimum)

For the full walkthrough, see our How to Deposit on Polymarket guide.

Tax Considerations (Important)

Japan has among the highest crypto tax rates in the world:

TaxRateDetails
Current rateUp to 55%Classified as “miscellaneous income” (雑所得) — 45% national + 10% local
Proposed reformFlat 20%For “specified crypto assets” on registered exchanges (15% national + 5% local)
Loss carryforward3 years (proposed)Currently no loss carryforward under existing rules

Key points:

  • Every crypto-to-crypto trade, crypto-to-fiat sale, and crypto use is a taxable event
  • Annual reporting required for gains exceeding ¥200,000
  • No distinction between short-term and long-term gains

2026 Tax Reform: Japan’s December 2025 tax reform package introduces a flat 20% rate for qualifying crypto assets — the same rate applied to stock gains. Approximately 105 cryptocurrencies qualify. The reform also introduces a 3-year loss carryforward. However, implementation may be delayed until as late as 2028. Gains from platforms like Polymarket (not on registered exchanges) may remain classified as miscellaneous income at the higher rate.

Keep detailed records of all Polymarket trades for tax reporting.

There are 250+ Japan-related event contracts actively traded on Polymarket, including:

  • BOJ (Bank of Japan) interest rate decisions
  • Japanese election outcomes
  • Economic indicators (GDP, CPI, employment)
  • Yen exchange rate movements

Getting Started

If you’re in Japan and want to start trading on Polymarket:

  1. Sign up for Polymarket — under 2 minutes, no KYC
  2. Buy USDC on SBI VC Trade (direct JPY-to-USDC) or another FSA-registered exchange
  3. Deposit on Polymarket — transfer USDC via Polygon
  4. Place your first trade — start small while learning

Frequently Asked Questions

Is Polymarket available in Japan?
Yes, technically. Polymarket does not geoblock Japanese IP addresses. The platform is accessible from Japan. However, Japanese gambling laws broadly prohibit wagering activities, even when the operator is overseas, creating legal uncertainty for Japanese users.
Is Polymarket legal in Japan?
This is a grey area. Japan's gambling laws prohibit wagering from within Japan, even when the operator is overseas. The National Police Agency has warned that online gambling from Japan is criminal regardless of where the platform is based. However, Polymarket has not been specifically targeted, and prediction markets have not been classified under Japanese law.
How do Japanese users deposit on Polymarket?
The simplest route is to buy USDC directly on SBI VC Trade — Japan's first and only licensed USDC distributor since March 2025. Deposit JPY via bank transfer, buy USDC, then transfer to Polymarket via Polygon. Other FSA-registered exchanges like bitFlyer and Coincheck also support crypto purchases.
What are the tax implications for Japanese Polymarket users?
Crypto gains in Japan are currently classified as 'miscellaneous income' and taxed at your marginal rate — up to 55% including local taxes. However, Japan's 2026 tax reform introduces a flat 20% rate for qualifying crypto assets on registered exchanges, though implementation may be delayed to 2028.
Is the FSA likely to regulate or block Polymarket?
The FSA has not issued specific guidance on prediction markets. It's focused on reclassifying crypto from the Payment Services Act to the Financial Instruments and Exchange Act. Prediction markets fall into a regulatory gap — they're not specifically addressed by any framework. A crackdown is possible but hasn't materialized.
Are there Polymarket markets about Japan?
Yes. There are 250+ Japan-related event contracts actively traded on Polymarket, primarily focused on macro/policy topics like BOJ interest rate decisions, Japanese elections, and economic indicators.