South Korea Blocks Polymarket in Major Crackdown

South Korea's communications regulator decided on Tuesday to restrict domestic access to Polymarket. Officials stated that the popular prediction market is speculative and violates local gambling laws. The Korea Communications Standards Commission issued a formal request directing internet service providers to block the website, citing provisions from the Criminal Act and the National Sports Promotion Act.

Polymarket defended itself by arguing that it does not accept local currency, dropped its Korean language support, and settles trades non custodially through smart contracts. However, the subcommittee dismissed these points. Regulators noted that the platform still creates markets, sets trading rules, manages fund collection, and earns revenue from fees, meaning decentralized technology does not bypass domestic laws.

This decision places South Korea alongside more than 30 other countries that restrict the platform, including France, Australia, and Germany. Meanwhile, local law enforcement is already investigating domestic traders for suspected illegal gambling. Traders should watch for further enforcement actions across international jurisdictions as prediction markets face increasing regulatory scrutiny.