South Korea has officially moved to block access to Polymarket, arguing that the crypto-based prediction market creates an illegal gambling environment for users in the country.
The decision was made by South Korea’s Broadcasting, Media and Communications Review Committee on Aug. 18 after regulators spent weeks reviewing how the platform operates. Authorities examined how markets are created, how trades are settled, how crypto deposits and withdrawals work, and how the company earns revenue from trading activity.
Polymarket allows users to buy and sell shares tied to the outcome of real-world events, including elections, politics, sports, economics, weather, and other topics. Traders can profit if they correctly predict the outcome of an event, while losing their investment if they are wrong.
South Korean regulators concluded that this “winner-takes-all” structure closely resembles gambling because users can experience significant gains or losses based on events they cannot control. They also argued that the platform benefits financially through transaction fees, making it more than just a neutral technology provider.
As a result, the committee determined that Polymarket could fall under laws that prohibit gambling activities and the operation of gambling venues. The regulator has now issued a formal request to block access to the platform for users in South Korea.
Polymarket defended its business model during the review process. The company argued that it operates through a non-custodial, peer-to-peer system powered by smart contracts, meaning it does not directly hold customer funds or act as a traditional bookmaker. It also stated that users trade against one another rather than against the platform itself.
However, regulators rejected those arguments. They said that decentralized technology does not automatically exempt a service from South Korean law. In their view, Polymarket still controls important parts of the system, including market creation, trading rules, and the infrastructure that allows users to participate.
Authorities also dismissed the fact that Polymarket does not offer a Korean-language version or support direct payments in Korean won. They argued that South Korean users can still access the platform and trade using cryptocurrencies, making the service available in practice.
One example highlighted by regulators was a prediction market related to rainfall in Seoul, which they said showed that Polymarket continued offering markets relevant to South Korean users despite its claims of limited local targeting.
The move follows earlier action by South Korean police, who launched investigations into some Polymarket users over allegations of illegal gambling connected to election-related prediction markets.
South Korea is not alone in taking action against the platform. Several countries, including India, the Czech Republic, France, Argentina, and Spain, have also restricted or blocked access to Polymarket under local gambling regulations.
Despite these growing restrictions, Polymarket continues to maintain that its decentralized structure makes it fundamentally different from traditional gambling operators. South Korean regulators disagree, arguing that the platform’s practical effect is what matters. Their position is that users are still risking money on uncertain outcomes, creating an environment that falls within the country’s gambling laws.
For now, South Korea’s decision means Polymarket joins a growing list of online prediction platforms facing regulatory pressure as governments around the world continue debating where prediction markets end and gambling begins.
