South Korea Blocks Access to Polymarket Over Illegal Gambling Concerns

Regulatory Action Against Polymarket

South Korea has mandated a block on access to the cryptocurrency-based prediction market Polymarket, following concerns raised by regulators about its facilitation of illegal gambling activities for domestic users. The decision was confirmed on August 18, 2026, by South Korea’s Broadcasting, Media and Communications Review Committee.

Concerns Over Gambling Practices

Regulators cited Polymarket’s “winner takes all” structure as a catalyst for encouraging speculative gambling behavior among its users. In response, Polymarket contended that its non-custodial peer-to-peer model does not align with the legal definitions of gambling under South Korean law.

Regulators’ Findings

During its review, the committee assessed the manner in which Polymarket operates its markets, establishes trading rules, and facilitates crypto transactions, including deposits and withdrawals. The committee determined that the platform’s operations could classify it as a venue for illegal gambling activities as outlined in the National Sports Promotion Act. Regulators expressed that the platform’s economic model allowed it to gain financially from activities that promote speculative gambling.

Platform Structure and User Interaction

Polymarket allows users to engage in trading shares related to various event outcomes, including politics and sports. The committee highlighted that the platform exposes users to significant financial risks with potential for extreme losses or gains on uncertain events.

Previous Investigations and Legal Context

This ruling follows a series of investigations initiated by South Korean police regarding alleged illegal gambling activities associated with Polymarket, particularly focused on election-related prediction markets. The committee’s conclusion about Polymarket’s operations came after extensive deliberation, including hearings where Polymarket had the opportunity to present its case against claims of illegal conduct.

International Responses to Polymarket

South Korea is not the only country taking action against Polymarket; access has been restricted in several nations. Notably, India blocked the platform in May due to its classification as an illegal online betting service. Similarly, the Czech Republic issued a blocking order, aligning with the stance taken by other countries, including France, Australia, and Germany, which also raised concerns over gambling losses and user protection.

Polymarket’s Defense

Despite the regulatory measures taken by South Korea and other countries, Polymarket maintains that its structure, which enables non-custodial transactions and the use of smart contracts, distances it from traditional gambling operations. However, the South Korean regulators have reaffirmed that the platform’s technical attributes do not exempt it from compliance with local laws, asserting that the provision of market opportunities to domestic users constitutes illegal gambling.