On August 18, the Korea Communications Standards Commission (KCSC) approved blocking access to Polymarket, deeming the platform an illegal gambling environment, according to Digital Asset citing the regulator’s decision.
The concerns involve markets related to politics, payments, sports, elections, and weather.
According to KCSC, these markets operate on a “winner-takes-all” model, encouraging users to engage in gambling behavior, as the financial outcome of such bets depends on events beyond participants’ control.
The Commission specifically noted Polymarket’s operational role. The platform’s administration manages market creation and trading rules, facilitates digital asset deposits and withdrawals, and earns commissions from transactions.
In response, Polymarket representatives stated that the service operates as a non-custodial P2P platform on smart contracts and does not directly hold user funds.
The regulator countered that the platform’s technical features, including decentralized elements and trading interface, do not exempt it from South Korean laws.
According to KCSC, the block is necessary to protect local users.
Earlier in August, New York authorities launched an investigation into the marketing practices of major prediction market operators. Polymarket, Kalshi, and associated products from Coinbase and Gemini Titan were included in the probe.
