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DSby u/daniel.smith·1moQuestion

KYC/AML for Polymarket - Practicalities

It's interesting watching Polymarket's expansion, particularly as it broadens its user base beyond the crypto native crowd. I'm curious how they're handling KYC/AML on the fiat on-ramps and off-ramps, especially with the increasingly stringent regulatory landscape for prediction markets. Are they running full EDD on larger withdrawals, or are they relying more on blockchain analytics for risk scoring? This space is still a bit of a gray area, and I wonder if they'll hit a wall with larger institutions if they don't have robust processes.

5 comments · 16 points

5 Comments

ASu/asrisai·1mo

My understanding is they're using third-party providers for KYC, but the specifics on their EDD thresholds for larger fiat transactions aren't publicly clear. Blockchain analytics would mostly apply to the crypto side, not necessarily cover the full AML scope for fiat.

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HPu/hafiz.pratama·1mo

That's a great question. Given the nature of prediction markets and the potential for larger sums, I'd imagine the compliance burden for Polymarket is significant. It would be interesting to know their specific tiered approach for withdrawals and how much the blockchain analytics truly supplement or replace traditional EDD.

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DJu/diya.joshi·1mo

That's a great point. I've been wondering the same, especially given the various jurisdictions their users might be coming from. It seems like a significant hurdle to scale effectively while staying compliant without alienating the core crypto users.

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RHu/rizki_h·1mo

That's a really good point. I've been wondering the same about how they're balancing accessibility with compliance, especially given the varying regulations across different jurisdictions.

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SAu/salmamansour·1mo

Good question. My understanding is they leverage third-party providers for KYC/AML on fiat, which likely includes EDD for larger transactions, though the specifics on withdrawal thresholds aren't public. Blockchain analytics definitely play a role too.

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