South Korea has ordered domestic access to Polymarket to be blocked after regulators determined that the prediction market platform could provide an illegal gambling environment under local law.
The Korea Media and Communications Standards Commission said its communications review subcommittee approved the access restriction on Tuesday following a regulatory review of the platform’s operations.
Regulator Identifies Potential Gambling Violations
The commission found that Polymarket carried information that could facilitate gambling or the operation of a gambling venue under South Korea’s Criminal Act. In addition, it determined that the platform could constitute a prohibited similar activity under the National Sports Promotion Act.
Polymarket allows users to trade on the outcomes of political, economic, sporting and other events using digital assets. Its markets have covered a wide range of topics, including elections, interest-rate decisions, international conflicts and weather conditions.
However, Korean regulators focused on the platform’s winner-takes-all structure. According to the commission, the model encourages gambling because users’ financial gains and losses depend on outcomes they cannot control.
The regulator also examined Polymarket’s broader role in facilitating transactions. It noted that the platform creates markets, establishes trading rules and provides systems for digital-asset deposits, withdrawals and settlements. Furthermore, the commission said Polymarket earns transaction fees while operating an environment in which user funds are effectively collected and distributed.
Polymarket Challenges South Korean Jurisdiction
Polymarket argued that South Korean authorities should not apply domestic information and communications laws to its platform. The company pointed to its removal of Korean-language services and the fact that it does not support payments in Korean won.
The company also maintained that its non-custodial, peer-to-peer structure prevents it from directly collecting or managing user funds. It argued that blockchain-based smart contracts further separate the platform from traditional centralized financial services.
However, the commission rejected these arguments. It said companies cannot evade domestic laws based on language availability, technical characteristics or the decentralized nature of their services.
The regulator also pointed to Polymarket’s market on Seoul’s August rainfall as evidence that the platform offered content specifically relevant to Korean users.
Authorities Consult Gambling and Sports Agencies
Before making its decision, the commission consulted the Korean National Police Agency, the Gambling Control Commission and the Korea Sports Promotion Foundation.
The agencies concluded that Polymarket’s operations could fall under South Korean laws governing gambling and the operation of gambling venues. Consequently, the commission approved the domestic access block.
The decision follows a regulatory review launched earlier this year, when South Korean authorities began examining whether Polymarket should be classified as an illegal gambling platform.
Polymarket Faces Growing Regulatory Pressure
South Korea’s decision adds to the growing regulatory scrutiny surrounding prediction markets as authorities worldwide examine how these platforms fit within existing gambling and financial regulations.
Polymarket has already faced investigations in the U.S. and compliance challenges in Japan linked to gambling concerns. Meanwhile, Singapore’s Gambling Regulatory Authority ordered access to the platform to be blocked last year, citing concerns over unauthorized gambling services.
As prediction markets continue to expand into areas such as politics, sports, finance and weather, regulators are increasingly focusing on whether their trading structures effectively function as gambling. South Korea’s latest action therefore highlights the growing legal and compliance challenges facing prediction market operators across international markets.
