Understanding Polymarket's KYC Requirements

Polymarket's KYC (Know Your Customer) requirements are in place to ensure a safe and secure trading experience for all users.

The verification process involves providing personal documents, such as a government-issued ID and proof of address, to verify identity.

To start the verification process, users must first create a Polymarket account and then navigate to the account settings page.

Upon completion of the verification process, users will be granted access to the full range of Polymarket features and markets.

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Polymarket scrutinizes user KYC as election nears, enforcing a credential re-verification process for high rollers on its Polygon-based service.

Polymarket is keeping a close eye on its biggest bettors to ensure users aren’t placing wagers on the platform ahead of the U.S. presidential elections.

The company, led by founder Shayne Coplan, is enforcing this geoblock on American users with new checks on know-your-customer details.

Polymarket isn’t available to U.S. users due to regulations, yet the platform has become nearly synonymous with the U.S. presidential elections, having taken in over $2.1 billion in bets on whether former President Donald Trump or Vice President Kamala Harris will win the White House.

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Polymarket KYC, or Know Your Customer, is a verification process that helps Polymarket ensure users are who they claim to be. This process is crucial for Polymarket to comply with anti-money laundering regulations.

Polymarket KYC involves verifying users' identities through a series of questions and document checks. This helps Polymarket to assess the risk of each user and prevent any illicit activities.

The verification process typically includes providing identification documents, such as a passport or driver's license, and answering questions about one's identity, location, and financial information.

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Polymarket KYC is designed to verify the identity of users to ensure the platform's integrity and security.

The primary goal of Polymarket KYC is to prevent illicit activities and maintain a fair market environment.

By verifying user identities, Polymarket can minimize the risk of money laundering, terrorist financing, and other financial crimes.

Polymarket's KYC process involves collecting and verifying personal and financial information from users.

This information is used to assess the risk associated with a user's account and prevent any suspicious activities.

The Polymarket KYC process is designed to be efficient and user-friendly, with a focus on minimizing the burden on users.

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Polymarket's challenge lies in its previous settlement with the CFTC, which may hold it to a higher standard than companies with no history of violating U.S. laws.

A seasoned compliance executive and lawyer, David Ackerman, notes that a company with no track record of violations is held to a different standard. This means Polymarket, having had a settlement, will be held to a different standard of care.

Simply blocking IP addresses from the U.S. may not be sufficient to comply with an order, according to Ackerman. Geo-fencing is not a foolproof solution, and it's not just about blocking IP addresses.

Geo-fencing should be viewed as a risk mitigation strategy rather than a legal strategy, says Brogan. It's not a guarantee of compliance.

The Commodity Exchange Act likely applies whenever an entity is serving U.S. persons, regardless of its location. This means Polymarket, as a company operating in Panama, may still be subject to U.S. laws.

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A CFTC commissioner's 2018 speech suggests a forgiving standard for determining liability for user behavior. The question is whether the company could reasonably foresee that its code would be used in a way that violates CFTC regulations.

The CFTC's 2022 order against Polymarket required them to wind down non-compliant markets, but did not specify what compliance would require. This has left Polymarket uncertain about what it needs to do to comply.

A common misconception is that you need to be domiciled in a country for its laws to apply. However, according to Ackerman, as long as your business has an effect in the jurisdiction, you are usually held to their laws.

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