South Korea moves to block Polymarket over gambling concerns
Written by Yohan Yunstaff editorReviewed by Robert Lakinstaff editorThe Korea Media and Communications Commission said Polymarket’s structure and operations amount to illegal gambling despite its noncustodial design and smart contracts.
South Korean authorities have ordered access to Polymarket to be blocked after determining that the crypto prediction market provides an illegal gambling environment to users in the country.
The country’s media and communications review commission said Tuesday that Polymarket falls under information that facilitates gambling or the opening of a gambling venue under the Criminal Act, as well as prohibited analogous betting activity under the National Sports Promotion Act.
The regulator said Polymarket’s winner-takes-all structure, where users can gain or lose money based on outcomes including politics, sports and weather, encourages speculative gambling behavior. It also cited Polymarket’s role in operating markets, setting trading rules, providing crypto deposit, withdrawal and settlement systems and collecting transaction fees.
In its statement to the commission, Polymarket argued that it had removed Korean-language services, does not support payments in Korean won and operates through noncustodial transactions and smart contracts rather than directly managing user funds.
The commission rejected those arguments, saying technical characteristics such as decentralization, trading interfaces and order books do not exempt a service from South Korean law.
France, Australia and Germany are among countries that have also blocked access to Polymarket on gambling-related grounds.
Related: JPMorgan cuts Polymarket banking ties over regulatory concerns: Report
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