South Korea Orders Nationwide Block on Polymarket Over Illegal Gambling Violations
South Korean regulatory authorities have ordered a domestic block on Polymarket, classifying the cryptocurrency-based prediction market as an illegal gambling service. The Korea Communications Standards Commission (KCSC) announced the decision following a comprehensive review, instructing national internet service providers to restrict access to the platform.
The regulatory ruling centers on violations of South Korea’s Criminal Act and the National Sports Promotion Act. Regulators determined that Polymarket’s operational model – which allows users to wager on the outcomes of real-world events such as elections, sports, and economic data – constitutes the facilitation of an unlicensed gambling venue. The KCSC concluded that the platform’s “winner-takes-all” structure, which relies on events beyond user control, inherently encourages speculative gambling behavior. Localized betting markets, such as wagers on Seoul’s August precipitation levels, were cited as direct evidence that the platform provides a practical gambling environment for domestic users.
Prior to issuing the access block, the KCSC consulted with multiple regulatory and law enforcement bodies, including the Korean National Police Agency, the National Gambling Control Commission, and the Korea Sports Promotion Foundation. These agencies collectively agreed that the platform’s activities met the legal definition of gambling under domestic law. This consensus follows an initial police investigation launched in late May, which scrutinized domestic users suspected of participating in election-related betting on the platform.
During the review process, Polymarket maintained that it operates outside of South Korean jurisdiction. The platform argued that it had proactively removed Korean-language services and disabled payments denominated in the South Korean won. Furthermore, Polymarket highlighted its decentralized, non-custodial structure, emphasizing that transactions are executed via blockchain-based smart contracts rather than through the direct management of user funds.
The KCSC rejected these defenses, stating that technical characteristics and decentralized service methods do not exempt an entity from the obligation to comply with domestic legislation. The committee affirmed that because the platform ultimately creates an illegal gambling environment, access blocking measures are a necessary step to protect domestic consumers.
