South Korean authorities have ordered internet access to Polymarket blocked after determining that the crypto-based prediction market offers an illegal gambling environment to domestic users. The decision was approved on August 18 by the country’s media and communications review body following a formal review process.

Officials concluded that parts of the platform fall under rules covering gambling assistance, the opening of gambling venues and similar prohibited activities. The finding draws on both the Criminal Act and the National Sports Promotion Act.

Regulator Findings on Platform Operations

The committee examined how Polymarket creates markets, sets trading rules, handles crypto deposits and withdrawals, and settles trades between users. It also considered the fees collected from share trading, which allow the operator to gain economic benefits from the activity.

Users trade shares linked to the outcomes of events in politics, economics, elections, sports, weather and other areas. Regulators stated that the winner-takes-all structure can produce extreme financial gains or losses based on events beyond users’ control and encourages speculative gambling behaviour.

Although trading occurs between users, officials determined that Polymarket manages the core infrastructure. This includes market creation, rule-setting and systems for crypto transfers and settlements, effectively creating an environment in which funds are collected and distributed.

Polymarket’s Arguments and Official Response

During the proceedings Polymarket maintained that its non-custodial peer-to-peer model and use of smart contracts mean the platform does not organise wagers or directly manage user funds. The company also noted that it had removed its Korean-language service and does not support payments in South Korean won.

Regulators rejected these points. They stated that the absence of a local-language interface, the use of decentralised technology, or the presence of centralised elements such as a trading interface and order book does not remove the service from South Korean legal requirements. Access via crypto remained possible for local users.

Authorities also pointed to markets tied specifically to South Korea, including a contract on rainfall in Seoul during August, as evidence that relevant activity continued to be offered.

Background to the Decision

The formal review began in July after input from the National Police Agency and the National Gambling Control Commission. South Korean police had already opened an investigation in late May into local users suspected of illegal gambling through election-related prediction markets. That probe marked the first known police action focused on Polymarket participants in the country.

Before voting, the committee sought opinions from the National Police Agency, the National Gambling Control Commission and the Korea Sports Promotion Foundation. Those agencies indicated that Polymarket’s structure could fall within provisions covering gambling and the establishment of gambling venues.

Wider Pattern of Restrictions

South Korea joins more than 30 jurisdictions that have restricted access to the platform on gambling-related grounds. Earlier actions include blocks or restrictions in France, Spain, India, the Czech Republic, Argentina, Australia, Germany, Indonesia, Singapore and Ukraine, among others.

Polymarket currently lists dozens of countries as fully restricted, though South Korea did not appear on that list at the time of the latest ruling. The platform has positioned its non-custodial structure as distinct from conventional gambling operators, but regulators in multiple countries have treated the accessible service as subject to local law when users can participate.

The August 18 corrective request requires access to be blocked in order to protect domestic users from what authorities classified as an illegal gambling environment.