On August 18, the Korea Communications Standards Commission (KCSC) approved a ban on access to Polymarket, deeming the platform an illegal gambling environment. This information was reported by Digital Asset citing the regulator's decision.
The concerns raised involve markets related to politics, payments, sports, elections, and weather.
According to the KCSC, these markets operate on a "winner takes all" model, which encourages users to engage in gambling behavior, as the financial outcomes of such bets depend on events beyond the participants' control.
The Commission highlighted Polymarket's role as an operator, stating that the platform's administration oversees the creation of markets and trading rules, facilitates the deposit and withdrawal of digital assets, handles settlements, and collects transaction fees.
In response to these claims, Polymarket representatives asserted that their service functions as a non-custodial P2P platform based on smart contracts and does not directly hold users' funds.
However, the regulator countered that the platform's technical features, including its decentralized aspects and trading interface, do not exempt it from South Korean laws.
The KCSC stated that the ban is necessary to protect local users.
It is worth noting that in August, New York authorities launched an investigation into the marketing practices of major prediction market operators. Polymarket, Kalshi, and related products from Coinbase and Gemini Titan are under scrutiny.