South Korea blocks Polymarket over gambling concerns

Coindesk reported that South Korea has become the latest country to shut down access to Polymarket over concerns that prediction markets constitute illegal gambling.

What’s the scoop?

• The block: Media and Communications Standards Commission of South Korea voted Tuesday to block national access to Polymarketconcluding that its prediction markets facilitate illegal gambling.
• The defense of Polymarket: Polymarket argued that it removed Korean language services, did not accept Korean won, and used non-custodial smart contracts rather than directly holding customer funds. Regulators rejected this argument, citing Polymarket’s role in creating markets, setting trading rules, providing settlement infrastructure and collecting fees.
• The application of the law is expanding: The decision follows a review which began in July at the request of Korean police and gambling authorities. Police have also reportedly opened investigations into local Polymarket users for suspected illegal gambling.
• Zoom out: South Korea now joins more than 30 jurisdictions restricting Polymarket, as governments become increasingly hostile to prediction markets, treating them like gaming products rather than financial markets.