South Korea Blocks Polymarket Over Illegal Gambling Concerns

South Korea is cracking down on decentralized prediction markets. The Korea Media and Communications Commission announced an official block on domestic access to Polymarket after ruling that the platform facilitates illegal gambling activities under local law. Authorities began looking into the platform earlier this year following police investigations into local users.

Polymarket attempted to defend its position by arguing that it falls outside South Korean jurisdiction because it removed Korean language support and blocked transactions using the local currency. The commission rejected this defense, stating that minor technical adjustments do not exempt any platform from following national laws. France, Australia, and Germany have also placed restrictions on the platform.

Legal pressure is mounting beyond Asia as well. Officials in Baltimore filed lawsuits against both Polymarket and Kalshi, claiming they offer unlicensed sports betting. Cities and regulators argue that calling these services event contracts does not change their true nature as betting products.

Traders should watch how prediction markets respond to this global wave of regulatory pushback. As more countries restrict access, compliance may become the biggest hurdle for decentralized platforms going forward.