Key Points
- Korea’s Broadcasting, Media and Communications Review Committee approved Polymarket’s blocking on Aug. 18
- Authorities determined the platform’s all-or-nothing betting structure promotes speculative gambling
- The platform defended itself by citing its decentralized, peer-to-peer architecture
- Korean officials dismissed this argument, stating that technology structure doesn’t exempt platforms from local regulations
- More than 30 countries worldwide have now implemented Polymarket restrictions
Korea has mandated that internet service providers block domestic access to Polymarket, a cryptocurrency-based prediction market platform, following determinations that it violates the nation’s Criminal Act and National Sports Promotion Act.
On August 18, the Broadcasting, Media and Communications Review Committee approved a formal blocking order. Officials determined that certain platform features constitute violations related to facilitating gambling and operating gambling establishments.
The platform enables participants to buy and sell binary outcome contracts based on real-world events spanning political elections, sporting competitions, economic indicators, and meteorological conditions.
Committee members identified the all-or-nothing payout model as problematic, noting that users experience total wins or complete losses determined by circumstances beyond their influence. Officials characterized this mechanism as promoting gambling-style speculation.
Regulatory Review Process
During their assessment, committee members analyzed Polymarket’s market creation procedures, trading regulations, cryptocurrency deposit and withdrawal systems, and settlement mechanisms. Officials also scrutinized transaction fees collected from contract trades, which they identified as revenue streams for platform operators.
Authorities referenced a specific market concerning August rainfall in Seoul as demonstrative evidence that the platform actively serves Korean participants.
Polymarket countered during proceedings that its decentralized peer-to-peer framework and smart contract implementation mean the platform doesn’t function as a betting organizer.
Representatives emphasized that the company neither holds nor manages participant funds directly and doesn’t distribute sports betting tickets. They contended these operational characteristics place the service beyond the scope of Korean gambling statutes.
The committee dismissed these contentions. Regulators determined that irrespective of technological implementation, Polymarket maintains control over market establishment and trading parameters while supplying the necessary infrastructure for cryptocurrency transactions.
Korea Adds to Expanding Global Restrictions
Officials stated that neither the absence of Korean-language interfaces nor decentralized operational structures provide exemption from domestic legal obligations. Korean residents maintain access to markets through cryptocurrency, regulators emphasized.
Prior to the August 18 decision, the committee consulted with the National Police Agency, National Gambling Control Commission, and Korea Sports Promotion Foundation. Each organization concluded that Polymarket’s operational model potentially violates gambling statutes.
Korea joins an expanding coalition of over 30 nations that have implemented Polymarket restrictions. This group encompasses France, India, Spain, Argentina, Indonesia, Ukraine, Czech Republic, Australia, and Germany.
Indian authorities blocked the service in May, categorizing prediction markets as prohibited money gaming operations. Czech regulators followed in July, treating Polymarket as an unlicensed gambling provider.
French authorities implemented access restrictions on July 16, expressing concerns about substantial user financial losses and potential market manipulation.
Korean law enforcement separately initiated criminal proceedings against domestic Polymarket participants in late May regarding alleged unlawful gambling through election prediction markets.
Polymarket’s official documentation identifies 39 nations as completely restricted from platform access. Korea had not yet appeared on this list following the August 18 determination.
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