South Korean police are investigating domestic users of the Polymarket prediction market platform for illegal gambling. This marks the first known probe into participants of a decentralized platform, examining potential violations of gambling laws. The investigation gained traction after Polymarket listed markets related to South Korea's local elections.
This investigation signals an expansion of South Korea's regulatory crackdown on digital assets to include decentralized prediction markets, potentially impacting the use of such platforms for event-based trading and setting a precedent for future enforcement actions.
South Korean police have initiated a gambling probe targeting domestic users of Polymarket, a decentralized prediction market platform. This investigation, handled by the Gangwon Provincial Police Agency at the request of the National Police Agency headquarters, marks the first known instance of South Korea investigating participants on such a platform for illegal betting. Polymarket allows users to trade contracts based on real-world events, including elections, markets, and sports. However, most private betting activities are illegal in South Korea, with only state-authorized Sports Toto products permitted, subject to a ₩100,000 limit. Authorities are examining whether Polymarket users' activities violate Article 246 of the Criminal Act, which pertains to gambling and carries potential fines of up to ₩10 million. The case gained significant attention following Polymarket's listing of markets related to South Korea's June 3 local elections, which reportedly saw substantial won-denominated betting volumes reaching billions of won. Polymarket remains accessible in South Korea and uses dollar-backed stablecoins for transactions, with no VPNs or special tools required. This probe follows other recent enforcement actions by South Korean authorities in the digital asset space, signaling a broader regulatory focus on blockchain-based financial activities. Several other countries, including Spain, India, and Indonesia, have also limited access to Polymarket.