South Korea’s media regulator has concluded that crypto prediction platform Polymarket constitutes illegal online gambling, citing the platform’s structure and operations despite its noncustodial, smart contract-based design.
Regulator’s finding
The Korea Media and Communications Commission said Polymarket’s core model—allowing users to wager on real‑world events using cryptocurrency—falls under prohibited gambling services under national law. According to the commission, employing smart contracts and a noncustodial architecture does not alter the legal characterization of the activity.
Access restrictions under consideration
The commission indicated it is moving to restrict domestic access to the platform. Such actions would align with South Korea’s ongoing efforts to curb unlicensed online gambling by limiting availability of offshore services to local users.
Background on Polymarket and prediction markets
Polymarket is a blockchain-based prediction market where users trade on outcomes of events such as elections, economic releases, and sports. Markets settle based on verifiable results, with trades executed through smart contracts. In 2022, Polymarket reached a settlement with the U.S. Commodity Futures Trading Commission related to offering unregistered, event-based binary options to U.S. users.
South Korea’s legal context
South Korea maintains strict prohibitions on most forms of online gambling and has previously moved to limit access to offshore websites that facilitate wagering without authorization. Cryptocurrency-based services are not exempt from these restrictions.