- South Korea’s KCSC approved measures to block access to Polymarket nationwide.
- The regulator rejected Polymarket’s argument that its non-custodial, smart-contract structure puts it outside gambling laws.
- The decision follows a police probe into local users who bet on regional elections.
South Korea’s Korea Communications Standards Commission (KCSC) on August 18 approved measures to block access to Polymarket, saying the prediction-market platform provides an illegal gambling environment for domestic users.
The commission cited Polymarket’s markets on politics, elections, sports and other events, as well as its winner-take-all payout structure. It said the platform’s design can encourage speculative gambling under South Korean law.
Regulator Rejects Polymarket’s Defense
Polymarket argued that its non-custodial, peer-to-peer structure and use of smart contracts put it outside traditional gambling rules. The company said it does not directly hold or manage users’ funds or operate conventional betting accounts.
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The KCSC rejected that argument, saying South Korean law cannot be avoided based on a platform’s technical structure. The regulator pointed to Polymarket’s role in creating markets, setting trading rules and facilitating cryptocurrency deposits, withdrawals and settlements.
The regulator said the platform’s technical architecture did not exempt it from South Korean law and concluded that blocking access was unavoidable.
Decision Follows Election-Betting Probe
The KCSC investigation began in late May following a complaint. Separately, Gangwon provincial police launched a criminal investigation in early June into local users who allegedly placed bets on regional elections.
Polymarket was given an opportunity to respond to the KCSC on July 6 before the commission reached its final decision.
The cases highlight the growing scrutiny of prediction markets in South Korea, where betting on elections and other events can trigger criminal and regulatory restrictions.
South Korea joins France, Germany, Italy, Singapore, Indonesia, Spain, Brazil, India, and Argentina among jurisdictions that have restricted or blocked Polymarket access over similar concerns.
Why This Matters
South Korea’s won was the world’s second-most-used currency for cryptocurrency purchases in 2025, underscoring the country’s strong crypto adoption and its potential importance as a market for prediction-market platforms.
The decision could influence how other Asian regulators, including those in Japan and Australia, approach prediction markets. It also adds to a growing pattern of jurisdictions rejecting decentralization-based defenses against gambling and securities laws.
The stakes are significant. Since the start of 2026, Polymarket has recorded $58.49 billion in trading volume, according to DeFiRate.
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