South Korea Blocks Polymarket Over Gambling Concerns
The country has joined more than 30 jurisdictions in restricting access to the prediction market platform.
South Korea has blocked domestic access to Polymarket after regulators concluded that the prediction market platform facilitates activities falling within the country’s gambling laws.
The Korea Media and Communications Standards Commission approved the restriction after determining that Polymarket facilitates gambling and the operation of gambling venues under South Korea’s Criminal Act, alongside activities covered by the National Sports Promotion Act.
The decision makes South Korea the latest of more than 30 jurisdictions to restrict access to Polymarket amid continuing international debate over how prediction markets should be classified and regulated.
Regulator Rejects Polymarket P2P Argument
Polymarket allows users to trade contracts based on the outcomes of real-world events, including elections, sport, economic indicators and weather.
South Korean regulators concluded that the structure encourages speculative activity because users can make or lose money according to the outcome of events outside their control.
Polymarket reportedly argued that it had already removed Korean-language services and does not support payments using the South Korean won.
The company also pointed to its use of non-custodial peer-to-peer transactions and smart contracts when outlining its position.
However, the commission rejected those arguments, concluding that Polymarket continues to play an active role in the operation of its markets.
According to the regulator, the platform manages market creation and trading rules while providing cryptocurrency deposit, withdrawal and settlement systems and charging fees.
Prediction Markets Face International Scrutiny
The South Korean action adds to the regulatory challenges facing prediction markets as the sector continues to expand internationally.
Platforms such as Polymarket allow customers to take positions on whether particular events will occur, with contracts covering subjects ranging from politics and financial markets to sport.
However, the crossover between event-based trading and conventional wagering has prompted questions in several jurisdictions over whether such products should be treated as financial instruments or gambling.
South Korea's decision places Polymarket among the platforms facing restrictions under the country's existing gambling framework, with domestic access now blocked following the commission's assessment of its operations.
