South Korea has taken steps to block access to the prediction market platform Polymarket, joining a growing list of over 30 jurisdictions that have imposed similar restrictions due to gambling concerns.
The Korea Media and Communications Standards Commission sanctioned the ban after determining that Polymarket operates in violation of the nation's Criminal Act and the National Sports Promotion Act, as reported by local media.
Polymarket allows users to trade contracts based on the outcomes of various real-world events, such as elections, sports, economic indicators, and weather conditions. It ranks as one of the largest prediction markets alongside Kalshi.
The commission highlighted that the structure of these markets promotes speculative behavior, as users’ financial outcomes rely on unpredictable events.
According to local reports, Polymarket stated it had eliminated Korean-language services, does not accept payments in the South Korean won, and utilizes non-custodial peer-to-peer transactions along with smart contracts.
However, regulators dismissed these arguments, asserting that Polymarket's operators still oversee market creation and trading rules, while also providing systems for crypto deposits, withdrawals, and settlements, which include charging fees.
The commission began its review of the platform in July at the request of the National Police Agency and the National Gambling Control Commission. Furthermore, police have initiated investigations into local users of Polymarket for potential illegal gambling activities.
With this move, South Korea aligns itself with countries like France and Spain, which have also restricted the platform due to ongoing concerns about gambling. France has mandated that internet service providers block access to Polymarket, marking a significant step in regulatory actions against the platform.
Other nations, such as Indonesia, Argentina, and Ukraine, have similarly taken action against Polymarket. In Ukraine, officials noted there is no legal avenue for the platform to resume operations.
Currently, Polymarket lists 39 countries as fully restricted from accessing its services, although South Korea is not included in this list.