South Korea will block access to Polymarket after regulators concluded that the blockchain-based prediction market operator facilitates illegal gambling. The move cuts off a platform that has already built a large catalogue of local contracts.
South Korea Blocks Polymarket in Latest Blow to Blockchain-Based Gambling
18 August 2026 - 15:40 UTC
By Matt Neill
Internet service providers will be required to block the site under the country's Criminal Act and National Sports Promotion Act, the Korea Media and Communications Commission (KMCC) said in a statement on 18 Aug. Polymarket's winner-take-all contracts make users' gains and losses depend on outcomes such as politics, economic data, sports and weather, effectively offering an "illegal gambling environment to domestic users" it said, following an enquiry informed by national police and other government agencies.
Polymarket's defence
Polymarket argued during a July hearing that Korean law should not apply because it had removed its Korean-language service, does not support payments in won, the nation's currency, and does not directly collect or manage user funds. The commission rejected those arguments, saying overseas companies cannot avoid Korean law through technical features or how their services are structured. Polymarket lists more than 500 markets linked to local politics, company results and financial markets, including contracts tied to Bank of Korea interest-rate decisions and domestic events.
A growing list of jurisdictions treat prediction markets principally as gambling rather than financial products. This latest restriction calls into question Polymarket's international business model and highlights the prevalence of legal and regulatory risk for gambling venues scaled through blockchains.
Banned in 30+ jurisdictions
The site is already blocked or restricted in more than 30 jurisdictions, while France ordered internet providers to block it in July after the nation's gambling regulator raised concerns over unauthorized betting, losses and possible manipulation. Polymarket is challenging that French order in court, its first legal fight against a national ban.
The approach contrasts with the more permissive direction in the US, where prediction markets are moving further into the regulated derivatives system. Polymarket has returned through a CFTC-regulated exchange, while the regulator is developing a broader framework for event contracts and recently backed Kalshi in its ongoing dispute with the state of New York.
