Polymarket faces South Korean ban amid illegal gambling allegations
According to the Korea Media and Communications Commission, Polymarket's operational framework and structural design constitute illegal gambling activities regardless of its decentralized nature and smart contract technology.
Regulators in South Korea have mandated that Polymarket be blocked from access following a determination that the cryptocurrency-based prediction market creates an unlawful gambling environment for the nation's residents.
On Tuesday, the nation's media and communications review commission declared that Polymarket constitutes content that enables gambling activities or the establishment of a gambling establishment according to the Criminal Act, in addition to representing forbidden similar betting operations as defined by the National Sports Promotion Act.
According to the regulatory body, Polymarket's all-or-nothing framework, which allows participants to either profit or incur losses depending on various outcomes spanning politics, sporting events and meteorological conditions, promotes speculative wagering conduct. The regulator additionally highlighted Polymarket's involvement in managing markets, establishing trading regulations, facilitating cryptocurrency deposit, withdrawal and settlement infrastructure and charging transaction fees.
During its submission to the commission, Polymarket contended that it had eliminated Korean-language support features, does not facilitate payments denominated in Korean won and functions via noncustodial transactions and smart contracts instead of exercising direct control over user assets.
The commission dismissed these contentions, stating that technical features including decentralization, trading platforms and order books do not provide immunity from South Korean legal requirements.
Among the nations that have similarly restricted access to Polymarket based on gambling-related justifications are France, Australia and Germany.