The Korea Communications Standards Commission has blocked access to Polymarket following a month-long dispute over illegal gambling allegations. The regulator gave the US firm a chance to respond in early July before imposing the ban.
Polymarket argued its blockchain contracts fall outside South Korean financial regulation, pointing to the absence of Korean-language support and the won currency. The platform said it operates through peer-to-peer transactions and smart contracts without custody, does not act as an organiser, and does not issue lottery tickets. It maintained the criteria for violations under the Criminal Code or the National Sports Promotion Act were not met.
Authorities rejected the defence. The KCSC said technical features, lack of Korean language, or decentralisation do not exempt a platform from local law. The regulator noted Polymarket creates markets on South Korean topics such as 'Rain in Seoul in August' and gives residents access to an illegal winner-takes-all environment.
South Korea joins a long list of jurisdictions that have blocked Polymarket. In Asia, Indonesia, Singapore and Myanmar have imposed bans. Major European gambling jurisdictions have also shut it out. Polymarket's refusal to classify itself as a gambling operator helped with US oversight under the CFTC but complicated expansion elsewhere.
Gibraltar has created a regulated framework for prediction markets, offering a rare opening in Europe. Most European regulators continue to treat event wagering as gambling, limiting industry growth.
