Summary
- South Korea has blocked local access to the prediction market Polymarket, citing violations of the country’s Criminal and National Sports Promotion Acts.
- Regulators rejected Polymarket’s defense regarding its P2P nature, arguing the platform manages market rules and facilitates crypto-based gambling activity.
- The decision aligns South Korea with over 30 other jurisdictions, including France and Spain, that have restricted the platform due to ongoing gambling concerns.
South Korea ordered domestic access to popular prediction market Polymarket blocked, becoming the latest of more than 30 jurisdictions to restrict the platform over gambling concerns.
The Korea Media and Communications Standards Commission approved the move after finding that Polymarket facilitates gambling and the operation of gambling venues under the country’s Criminal Act along with similar categories under the National Sports Promotion Act, as reported by local reports.
Polymarket lets users trade yes-or-no contracts tied to the outcomes of real-world events including elections, sports, economic data and the weather. It’s one of the largest prediction markets along with Kalshi.
The commission stated that these markets’ structure encourages speculative behavior because users’ gains and losses depend on events beyond their control.
Polymarket, as reported by local media, stated that it had removed Korean-language services, does not support payments in the country’s won fiat currency, and uses non-custodial peer-to-peer transactions and smart contracts.
The company did not immediately respond to CoinDesk’s request for further comment.
The regulator rejected the defense, saying Polymarket’s operator still manages market creation and trading rules while providing crypto deposit, withdrawal and settlement systems and charging fees.
