JPMorgan Chase terminated banking services for Polymarket, a prediction market platform, in 2023 due to regulatory concerns, a source familiar with the matter told Reuters.
The decision followed scrutiny over Polymarket’s operations, which facilitate wagering on real-world events, raising compliance issues under U.S. financial regulations. The bank’s move highlights broader challenges faced by decentralized platforms navigating evolving legal frameworks.
Polymarket, which operates as a prediction market, allows users to trade on outcomes of events such as elections, sports, and economic indicators. The platform’s model has drawn attention from regulators, including the Commodity Futures Trading Commission (CFTC), which has previously issued warnings about potential violations of derivatives laws.
JPMorgan’s exit underscores the growing caution among traditional financial institutions toward crypto-linked or decentralized platforms amid heightened regulatory oversight. The bank did not respond to requests for comment.
The termination of services occurred last year, though the exact date was not disclosed. Polymarket has not publicly addressed the matter.
