South Korea Orders Polymarket Blocked Over Illegal Gambling Concerns

South Korean authorities have directed that access to Polymarket be blocked, after determining the crypto prediction market operates as an illegal gambling platform within the country. The Korea Communications Standards Commission announced the decision Tuesday, stating that Polymarket falls under provisions of the Criminal Act covering the facilitation of gambling, as well as restrictions on analogous betting activity under the National Sports Promotion Act.

Why Regulators Say the Platform Amounts to Gambling

The commission pointed to Polymarket’s winner-takes-all format, where users bet on outcomes ranging from political events to sports and weather, arguing this structure encourages speculative gambling behavior. Regulators also highlighted the platform’s role in setting up markets, establishing trading rules, and managing crypto deposits, withdrawals, and settlement, along with collecting transaction fees on those activities.

Polymarket’s Defense Rejected by Regulator

In response to the commission, Polymarket argued that it had already removed Korean-language services, does not accept payments in Korean won, and operates through noncustodial smart contracts rather than directly holding or managing user funds.

The commission dismissed those arguments, stating that technical features like decentralization, trading interfaces, and order books do not exempt a platform from South Korean law.

Part of a Wider Global Pattern

South Korea joins a growing list of countries taking action against the platform. France, Australia, and Germany have also blocked access to Polymarket on similar gambling-related grounds.