Regulation
South Korea Blocks Access to Polymarket, Citing Illegal Gambling Activities
South Korea has officially blocked access to Polymarket, a blockchain-based prediction market platform, after the Korea Communications Standards Commission (KCSC) classified its operations as illegal gambling. This decision was made on August 18, 2026, as part of a broader crackdown on crypto-related activities in the country.
The KCSC's review process began in May 2026, focusing on whether Polymarket's offerings fell under the definition of illegal gambling according to South Korean law. By mid-August, the commission concluded that Polymarket's model, which allows users to buy and sell shares based on the outcomes of real-world events, violated the Criminal Act and the National Sports Promotion Act.
South Korea has stringent gambling laws, permitting only a limited number of state-sanctioned betting activities. The KCSC found that Polymarket's operations encouraged speculative behavior, which is deemed illegal. The platform had gained significant attention during the 2025-2026 election cycle, prompting a criminal investigation by the Gangwon Provincial Police Agency into users who placed bets on local elections.
Consequently, South Korean authorities are not only targeting platforms like Polymarket but are also willing to pursue individual users involved in illegal gambling activities. This move aligns South Korea with over 30 other jurisdictions worldwide that have restricted or banned Polymarket.
Despite the ban in South Korea and Indonesia, Polymarket remains operational in some Asian markets. However, the increasing number of restrictions raises concerns about the future of prediction markets globally.
New Developments on Polymarket in South Korea
- South Korea's Korea Communications Commission has ordered a nationwide block on Polymarket, citing violations of the Criminal Act and National Sports Promotion Act.
- The decision was made after consultations with the National Police Agency, National Gambling Control Commission, and Korea Sports Promotion Foundation.
- Polymarket's winner-take-all market structure has been deemed to encourage illegal gambling activities.
- Regulators highlighted that Polymarket's operations could be classified as an unlicensed gambling venue under existing laws.
- Specific examples of targeted local markets, such as betting on Seoul's rainfall totals, were cited as evidence of Polymarket's focus on South Korean users.
- South Korea joins over 30 jurisdictions that have restricted access to Polymarket due to similar concerns, including France and Argentina.
FAQ
Why did South Korea block access to Polymarket?
South Korea blocked access to Polymarket because the Korea Communications Standards Commission (KCSC) classified its operations as illegal gambling, violating the Criminal Act and the National Sports Promotion Act.
When was the decision to block Polymarket made?
The decision to block Polymarket was made on August 18, 2026.
What prompted the KCSC to review Polymarket's operations?
The KCSC began its review process in May 2026 to determine whether Polymarket's offerings constituted illegal gambling under South Korean law.
What are the implications of this ban for users in South Korea?
The ban means that users in South Korea are prohibited from accessing Polymarket, and authorities may pursue legal action against individuals involved in illegal gambling activities.
How does South Korea's stance on Polymarket compare to other jurisdictions?
South Korea's ban on Polymarket aligns with over 30 other jurisdictions worldwide that have restricted or banned the platform due to similar concerns regarding illegal gambling.