Indonesia has taken action against the crypto prediction market Polymarket, deeming it illegal online gambling according to local regulations.
The Ministry of Communication and Digital Affairs announced that they have restricted access to the platform, with efforts underway to monitor and potentially limit access to affiliated social media accounts as well.
Alexander Sabar, the director general overseeing digital space, stated that platforms allowing users to place bets on uncertain outcomes are classified as gambling products, regardless of whether they utilize blockchain technology or cryptocurrencies.
Polymarket enables users to trade contracts linked to various real-world events, such as elections, sports, and cryptocurrency prices. While it has become one of the largest crypto prediction markets, regulators in multiple regions have classified parts of its operations as gambling rather than legitimate financial market activities.
Although the Indonesian statement did not specifically mention Kalshi, a U.S.-regulated prediction market, it indicated that similar services facilitating online gambling would also face restrictions.
Should Indonesian regulators find other prediction-market platforms allow betting on uncertain real-world events, those too could be affected by this order.
This development is part of a wider crackdown on prediction markets across Asia, with India also recently blocking Polymarket after categorizing such platforms as illegal online gambling. Kalshi is reportedly under scrutiny as well. Additionally, Polymarket is pursuing regulatory approval in Japan by 2030, where strict gambling laws limit most betting activities to those sanctioned by the state.
The Indonesian ministry noted that Polymarket has already been blocked in several countries, including Singapore, Brazil, and India, while Taiwan, Thailand, China, and Japan have implemented various restrictions. Furthermore, the platform is prohibited in Ukraine, where there is no legal avenue for its return.
Authorities have advised Indonesians against engaging in any digital betting activities, including those involving cryptocurrencies, highlighting the risks of financial loss and violations of local laws. The ministry pledged to continue collaborating with law enforcement and other relevant parties to oversee similar platforms.