JPMorgan Blacklisted the Prediction Platform—Then Secretly Tried to Make Amends
According to a report by The Financial Times, JPMorgan notified Polymarket back in October last year that it would no longer provide banking services. The stated reason was regulatory concerns: the prediction market business was too sensitive in terms of identity.
Polymarket had previously been fined by U.S. regulators for operating without a license—$1.4 million. Since 2022, it has been banned from serving U.S. users. It only returned to the U.S. market after last year’s rules were loosened.
After being blacklisted, it switched to another bank—but who exactly is not disclosed.
But then the truly outrageous part: in February, JPMorgan still invited Polymarket’s CEO to speak at a meeting for its private clients. Privately, it was also trying to secure the company’s business for underwriting its future IPO.
Closing the door, then handing out a business card—this move is both shameless and hypocritical.
Of course, you can understand it. Prediction markets have grown too fast in recent years—World Cup, elections, and all kinds of major events—where trading volume routinely sets records. Wall Street is obviously jealous.
But the regulatory red line is right there. Banks are terrified of getting pulled in. Compliance teams would rather mistakenly cut people off than allow anything improper, so they first separate and distance themselves to protect their licenses. They’ll come back when the policies become clear and it’s safer to do business.
This serves as a warning to every platform operating prediction markets: no matter how big the traffic gets, once a bank shuts the door, it won’t matter. Compliance is the lifeline.
Do you think this industry will ever get a “washed clean” day? Let’s chat in the comments.
Click the avatar to watch the live stream
Every day, I’ll help you follow the latest developments in prediction markets—not just what happens in the news, but how to understand the underlying logic and opportunities 👉🦖
#Polymarket #prediction markets
According to a report by The Financial Times, JPMorgan notified Polymarket back in October last year that it would no longer provide banking services. The stated reason was regulatory concerns: the prediction market business was too sensitive in terms of identity.
Polymarket had previously been fined by U.S. regulators for operating without a license—$1.4 million. Since 2022, it has been banned from serving U.S. users. It only returned to the U.S. market after last year’s rules were loosened.
After being blacklisted, it switched to another bank—but who exactly is not disclosed.
But then the truly outrageous part: in February, JPMorgan still invited Polymarket’s CEO to speak at a meeting for its private clients. Privately, it was also trying to secure the company’s business for underwriting its future IPO.
Closing the door, then handing out a business card—this move is both shameless and hypocritical.
Of course, you can understand it. Prediction markets have grown too fast in recent years—World Cup, elections, and all kinds of major events—where trading volume routinely sets records. Wall Street is obviously jealous.
But the regulatory red line is right there. Banks are terrified of getting pulled in. Compliance teams would rather mistakenly cut people off than allow anything improper, so they first separate and distance themselves to protect their licenses. They’ll come back when the policies become clear and it’s safer to do business.
This serves as a warning to every platform operating prediction markets: no matter how big the traffic gets, once a bank shuts the door, it won’t matter. Compliance is the lifeline.
Do you think this industry will ever get a “washed clean” day? Let’s chat in the comments.
Click the avatar to watch the live stream
Every day, I’ll help you follow the latest developments in prediction markets—not just what happens in the news, but how to understand the underlying logic and opportunities 👉🦖
#Polymarket #prediction markets