Key Points
- On August 18, South Korea’s Broadcasting, Media and Communications Review Committee approved a measure to ban Polymarket access
- Authorities determined the platform’s all-or-nothing betting structure promotes speculative gambling conduct
- The platform contended its peer-to-peer, non-custodial architecture exempts it from gambling regulations
- Officials dismissed this argument, asserting that decentralized technology doesn’t shield the service from Korean jurisdiction
- More than 30 countries worldwide have now imposed restrictions on Polymarket
Authorities in South Korea have mandated the blocking of Polymarket, a cryptocurrency-based prediction market platform, after determining 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 request to restrict domestic access to the service. Officials determined that certain platform operations fall under legal provisions governing gambling facilitation and the establishment of gambling establishments.
The platform enables participants to purchase and sell binary outcome contracts linked to real-world occurrences such as political elections, sporting competitions, economic indicators, and meteorological conditions.
According to the committee, the platform’s binary outcome mechanism generates significant financial profits or deficits based on circumstances beyond participant influence. Officials characterized this framework as promoting speculative betting activities.
Regulatory Review Process
The committee analyzed Polymarket’s market generation processes, trading protocols, cryptocurrency deposit and withdrawal mechanisms, and transaction settlement procedures. Officials also scrutinized transaction fees collected from share trading activity, which they stated enables the platform operator to generate revenue.
During proceedings, regulators referenced a specific contract concerning August rainfall in Seoul as demonstration that the platform actively offers markets targeting South Korean participants.
Polymarket contended throughout the review process that its decentralized peer-to-peer architecture and smart contract implementation mean the platform doesn’t function as a wager organizer.
The organization further asserted it doesn’t directly hold or administer user assets and doesn’t distribute sports betting tickets. Based on these factors, the company maintained its operations exist outside Korean legal jurisdiction.
The committee dismissed these contentions. Officials stated that irrespective of technical implementation, Polymarket maintains control over market establishment and trading protocols while supplying the necessary infrastructure for cryptocurrency transactions.
Korea Adds to Expanding Restriction List
Regulators emphasized that the lack of Korean-language support or utilization of decentralized infrastructure cannot serve as justification to circumvent Korean legal obligations. Korean residents maintain access to markets through cryptocurrency, officials observed.
Prior to the August 18 decision, the committee consulted with the National Police Agency, National Gambling Control Commission, and Korea Sports Promotion Foundation. All three organizations concluded that Polymarket’s operational model could qualify under gambling statutes.
South Korea now joins over 30 territories that have imposed restrictions on Polymarket. Additional jurisdictions include France, India, Spain, Argentina, Indonesia, Ukraine, the Czech Republic, Australia, and Germany.
Indian authorities blocked the service in May after classifying prediction markets as prohibited money gaming platforms. The Czech Republic implemented restrictions in July after categorizing Polymarket as an unlicensed gambling operation.
French regulators blocked access on July 16, expressing concerns regarding substantial user losses and possible bet manipulation.
Separately, South Korean law enforcement initiated criminal proceedings against domestic Polymarket participants in late May concerning alleged unlawful gambling through election-based prediction markets.
Polymarket presently identifies 39 nations as completely restricted from platform access. As of the August 18 decision, South Korea had not yet appeared on that official list.
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