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South Korea moves to block Polymarket over gambling concerns
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- DeepHorus
South Korea has ordered internet service providers to block access to Polymarket, the crypto-based prediction market, after regulators determined that its operations constitute illegal gambling under national law. The Korea Media and Communications Commission announced the decision on Tuesday, citing the platform’s winner-takes-all structure, which lets users bet on outcomes ranging from politics to weather. This move places South Korea alongside France, Australia, and Germany, which have also restricted Polymarket for gambling-related reasons.
The commission classified Polymarket as facilitating gambling under the Criminal Act and prohibited analogous betting under the National Sports Promotion Act. It noted that the platform operates markets, sets trading rules, provides crypto deposit and withdrawal systems, and charges transaction fees. These features, regulators argued, encourage speculative gambling behavior among users, regardless of Polymarket’s underlying blockchain technology.
In its response, Polymarket contended that it had removed Korean-language services, does not support payments in Korean won, and uses noncustodial smart contracts rather than directly handling user funds. The company argued that its decentralized design should exempt it from local laws. However, the commission rejected these arguments, stating that technical characteristics such as decentralization, trading interfaces, and order books do not exempt a service from South Korean jurisdiction.
The decision reflects a broader international crackdown on prediction markets, which regulators increasingly view as unlicensed betting platforms. South Korea has strict anti-gambling laws, and authorities have previously blocked overseas gambling websites. By targeting Polymarket, the commission is signaling that crypto-based platforms cannot evade domestic regulations just by using blockchain infrastructure.
Industry observers note that this could deter other decentralized platforms from targeting South Korean users. It may also lead to increased scrutiny of similar prediction services like Kalshi and PredictIt, though their regulatory status varies by country. For Polymarket, the block could reduce its global user base and trading volumes, particularly as it already faces banking challenges.
The commission’s order will likely take effect immediately, requiring internet service providers to block access to Polymarket’s website and app. Polymarket may appeal the decision, but legal experts suggest the outcome is uncertain. As more countries tighten gambling laws, the future of prediction markets remains in question, especially for platforms operating across borders.
