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Coindesk reported that South Korea has become the latest country to shut off access to Polymarket over concerns that prediction markets amount to illegal gambling.
What’s the scoop?
- The Block: South Korea's Media and Communications Standards Commission voted Tuesday to block domestic access to Polymarket, concluding that its prediction markets facilitate illegal gambling.
- Polymarket’s Defense: Polymarket argued that it had removed Korean-language services, does not accept Korean won, and uses non-custodial smart contracts rather than directly holding customer funds. Regulators rejected that argument, citing Polymarket's role in creating markets, setting trading rules, providing settlement infrastructure, and collecting fees.
- Enforcement Widens: The decision follows a review that began in July at the request of Korean police and gambling authorities. Police have also reportedly opened investigations into local Polymarket users over suspected illegal gambling.
- Zooming Out: South Korea now joins more than 30 jurisdictions restricting Polymarket, as governments grow increasingly hostile to prediction markets, treating them as gambling products instead of financial markets.
