South Korea's media regulator has voted to block domestic access to Polymarket, classifying the decentralized prediction market as an illegal gambling operator. The decision escalates a multi-month regulatory standoff, with regulators rejecting Polymarket's arguments about its decentralization and lack of Korean-language services.
The decision by South Korea, a major Asian crypto market, to block Polymarket adds to a growing list of global restrictions on decentralized prediction markets, increasing geo-restriction risk and potentially narrowing liquidity for investors.
South Korea's media regulator has voted to block domestic access to Polymarket, the world’s largest decentralized prediction market, classifying it as an illegal gambling operator. The Korea Communications Standards Commission made the ruling on August 18, 2026, citing Polymarket's winner-takes-all profit structure that encourages speculative behavior tied to uncontrollable events like politics, sports, and weather. The commission rejected Polymarket's arguments that its non-custodial, peer-to-peer smart contract platform and removal of Korean-language services exempt it from South Korean law. Polymarket had preemptively removed Korean-language support and hidden Korea-specific markets in July 2026. The final order requires telecom operators to enforce ISP-level restrictions, with users attempting access via VPN facing fines. This decision follows a multi-month regulatory standoff, including criminal probes into domestic users launched by prosecutors in June 2026. Polymarket has faced similar restrictions in France, Germany, Australia, Indonesia, and India. JPMorgan had previously cut ties with the platform over regulatory concerns. The ruling comes just before a scheduled White House meeting with crypto and prediction market executives, and amid warnings from the CFTC to Polymarket and rival Kalshi regarding gambling odds.