Indonesia has blocked Polymarket, labeling it illegal online gambling under local laws and monitoring associated platforms.
Indonesia has officially classified Polymarket, a cryptocurrency prediction market, as illegal online gambling, leading to restricted access to the platform.
The Ministry of Communication and Digital Affairs announced its decision, indicating that it is also monitoring affiliated social media accounts for potential restrictions.
Alexander Sabar, the ministry's director general for digital affairs, explained that any platform that allows users to bet on uncertain outcomes falls under gambling regulations, irrespective of the use of blockchain or cryptocurrencies.
Polymarket allows users to trade contracts tied to real-world events like elections and sports, positioning itself as one of the largest crypto prediction markets. However, regulators globally have increasingly categorized its operations as gambling rather than legitimate financial activities.
While the announcement did not explicitly mention Kalshi, a regulated U.S. prediction market, it suggested that similar platforms facilitating online gambling could also be impacted.
Regulators in Indonesia may extend their scrutiny to other prediction market platforms that enable betting on uncertain events, potentially affecting a broader range of services.
This move is part of a larger trend across Asia, with India recently blocking Polymarket and labeling it as illegal gambling. Kalshi is also reportedly facing regulatory scrutiny. Meanwhile, Polymarket is seeking regulatory approval in Japan by 2030, where strict laws limit betting to state-sanctioned activities.
The Indonesian ministry highlighted that Polymarket has faced bans in multiple countries, including Singapore, Brazil, and India, while various restrictions exist in Taiwan, Thailand, China, and Japan. Ukraine has outright banned the platform due to its gambling laws.
Authorities have cautioned Indonesians against participating in any digital betting, including cryptocurrency-related activities, citing risks of financial loss and legal violations. The ministry committed to ongoing collaboration with law enforcement to monitor similar platforms.
