- South Korea will block access to Polymarket after regulators determined the crypto prediction platform could facilitate illegal gambling.
- Authorities rejected Polymarket’s argument that removing Korean-language support and won payments placed it outside Korean law.
- Internet service providers will restrict access, adding Korea to a growing list of countries limiting the platform.
South Korea is moving to block Polymarket, escalating regulatory pressure on the crypto-powered prediction market after authorities concluded that its services could violate the country’s strict gambling laws.
The Korea Media and Communications Commission said Tuesday that Polymarket provides information facilitating gambling or activities similar to sports betting. Following the decision, Korean internet service providers will be required to block access to the platform.
Regulators Target Polymarket’s Prediction Model
Polymarket allows users to trade cryptocurrency-based positions tied to outcomes ranging from elections and sporting events to interest-rate decisions, geopolitical developments and weather.
Korean regulators argued that its winner-take-all structure resembles gambling because users’ profits and losses depend heavily on events outside their control. Gambling is generally prohibited for Korean citizens, with violations potentially carrying financial penalties.
The commission also pointed to markets specifically involving Korea, including predictions about Seoul rainfall, as evidence that the service remains relevant to Korean users.
Polymarket’s Defense Rejected
Polymarket argued during a July hearing that Korean regulations should not apply because it had removed Korean-language services and does not accept payments in Korean won.
The company also maintained that it does not directly hold customer funds or issue conventional sports betting tickets. Regulators rejected those arguments, saying companies cannot avoid Korean law simply through technical differences in how their platforms operate.
Authorities reached the decision after consultations with Korean police, gambling regulators and sports authorities, which indicated Polymarket’s activities could qualify as gambling or operating a gambling venue.
Crypto Prediction Markets Face Growing Scrutiny
South Korea’s decision adds another significant market to the regulatory challenges facing Polymarket. Around 30 countries, including France and Australia, have reportedly already restricted access to the platform.
The development also highlights the unusual regulatory position of blockchain prediction markets. While supporters often describe them as information markets that aggregate expectations about future events, regulators in some jurisdictions increasingly view their financial structure as little different from online gambling.
For Polymarket, Korea’s block shows that removing localized services may not be enough when regulators believe residents can still access and wager on locally relevant events.
