CoinDesk
South Korea is now one of more than 30 jurisdictions restricting Polymarket after the Korea Media and Communications Standards Commission approved a domestic access block. The commission cited the country’s Criminal Act and National Sports Promotion Act, saying Polymarket facilitates gambling through crypto-based prediction markets. It rejected the platform’s argument that its non-custodial, peer-to-peer structure put the service outside gambling rules.
Why it matters
Polymarket lets users trade yes-or-no contracts tied to elections, sports, economic data and weather. The commission said the structure encourages speculative behavior because users’ gains and losses depend on events beyond their control.
Polymarket said it removed Korean-language services, does not support payments in South Korean won, and uses non-custodial peer-to-peer transactions and smart contracts. The commission focused instead on the operator’s role, saying it creates markets, manages trading rules, provides crypto deposit, withdrawal and settlement systems, and charges fees.
Market impact
South Korea’s action adds to restrictions in France, Spain, Indonesia, Argentina and Ukraine. Polymarket lists 39 countries as fully restricted but does not yet include South Korea, leaving its public access list out of step with the new order.
Police had also opened an investigation into Polymarket users over suspected illegal gambling after requests from the National Police Agency and National Gambling Control Commission. For crypto prediction markets, the case makes operator control, settlement infrastructure and market access central compliance questions even when trading uses peer-to-peer transactions and smart contracts.
Frequently asked questions
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Which laws did South Korea cite in blocking Polymarket?
The Korea Media and Communications Standards Commission cited the Criminal Act and National Sports Promotion Act, saying Polymarket facilitates gambling through crypto-based prediction markets.
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Why did regulators reject Polymarket’s peer-to-peer defense?
The commission said Polymarket creates markets, manages trading rules, provides crypto deposit, withdrawal and settlement systems, and charges fees. It focused on those operator functions despite the platform’s non-custodial structure.
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What kinds of contracts does Polymarket offer?
Polymarket offers yes-or-no contracts tied to elections, sports, economic data and weather. The commission said the structure encourages speculation because gains and losses depend on events beyond users’ control.
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How many countries does Polymarket list as fully restricted?
Polymarket lists 39 countries as fully restricted, but South Korea is not yet included on that list.
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What other enforcement action is underway in South Korea?
Police opened an investigation into local Polymarket users over suspected illegal gambling after requests from the National Police Agency and National Gambling Control Commission.
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