South Korean Regulator Weighs Action Against Polymarket

Polymarket lets users trade cryptocurrency-based contracts tied to outcomes in politics, sports, economics and weather, with winning positions paying out after an event is resolved. South Korea generally prohibits gambling under its Criminal Act, which allows fines of up to 10 million won ($7,000). Regulators said the platform’s winner-take-all structure encourages speculation, while its non-custodial model and smart-contract settlement do not place it beyond Korean law.

The Korea Media and Communications Commission decided on Aug. 18, 2026, to order domestic internet service providers to block Polymarket, following a July 6 hearing at which the company argued it neither handles customer funds nor accepts won payments. The commission said it consulted the Korean National Police Agency, the National Gambling Control Commission and the Korea Sports Promotion Foundation before concluding the service could facilitate illegal gambling. South Korea joins more than 30 jurisdictions restricting access to the platform.

Prediction markets let users trade event contracts tied to outcomes in sports, politics, culture and weather. The industry has expanded rapidly in New York City, while escaping some marketing restrictions and consumer safeguards that apply to casinos and online sports betting. That regulatory gap has sharpened concerns that platforms may present wagering as investing, target minors or young adults, and expose people prone to compulsive gambling to potentially addictive products.

New York City Council Speaker Julie Menin announced the investigation on Aug. 12, 2026, sending letters to Kalshi, Polymarket, Coinbase and Gemini Titan seeking details about advertising reaching New Yorkers. The Council plans a hearing and will examine allegations involving undisclosed influencer promotions, fictitious trades and videos portraying losing wagers as profitable. Council Member Harvey Epstein said prediction-market volume could reach $300 billion this year. The inquiry may lead to new legislation, enforcement, public education, health measures or funding for consumer protection.

Polymarket and Kalshi let users trade event contracts tied to elections, sports and other outcomes, blurring the boundary between derivatives and gambling. The Commodity Futures Trading Commission says the Commodity Exchange Act gives it exclusive federal jurisdiction over contracts listed on registered exchanges. States counter that sports-heavy platforms are effectively unlicensed betting businesses subject to local gambling laws. The dispute carries fiscal stakes: the American Gaming Association estimates states have missed out on more than $1.2 billion in tax revenue since sports event contracts emerged.

On July 27, 2026, U.S. District Judge Katherine Menendez issued a preliminary injunction blocking Minnesota’s first-in-the-nation prediction-market ban before its scheduled Aug. 1 start. The law would have made operating, hosting or advertising covered markets a felony punishable by up to five years in prison and a $10,000 fine. Menendez found the CFTC, Polymarket and Kalshi were likely to prevail on federal pre-emption claims and faced irreparable harm, leaving the state law suspended while the litigation proceeds.

Polymarket, a decentralized prediction market where users wager crypto assets on political, economic and other outcomes, has drawn regulatory scrutiny as authorities debate whether such platforms provide useful forecasting signals or constitute unlicensed gambling. France’s Autorité nationale des jeux, or ANJ, treats the service as an illegal betting platform, while allegations of insider trading and market manipulation have intensified concerns over consumer protection and market integrity.

The ANJ ordered internet service providers across France to block access to Polymarket’s domains, extending restrictions even after the platform stopped offering financial trading to French users. The site still recorded about 200,000 visits from France in June, according to reports. The regulator said unlawful promotion could carry fines of as much as 100,000 euros. Polymarket said it was surprised that access was blocked even as an information source and plans to challenge the nationwide measure through legal channels.

Polymarket allows users to trade on the probabilities of outcomes in politics, sports and other events. On January 3, 2022, the US Commodity Futures Trading Commission fined the company $1.4 million for offering event-based binary options without registration and ordered it to stop serving US customers. That regulatory history has made compliance and market credibility central to the platform’s return.

A July 8, 2026, report said Polymarket was marketing itself in the United States through TikTok influencers, X and partnerships with Major League Baseball, CNBC and CNN, among others. Its X account had about 1.7 million followers. The company acquired CFTC-licensed exchange QCEX for $112 million in July 2025 and launched a regulated real-money sports prediction app at the end of that year. However, just one month before the report, influencers were found not to have clearly disclosed sponsorships.

Polymarket is a prediction market where users trade crypto assets based on event outcomes. Its election contracts have repeatedly raised questions over whether they constitute gambling because users can place wagers and profit from the results. The Korea Communications Standards Commission (KCSC) will assess whether the platform violates South Korea’s anti-gambling laws. Eight countries, including France and Germany, have already classified it as an illegal gambling platform.

The review was triggered by a Polymarket prediction market on South Korea’s June 3, 2025 presidential election. South Korean police have also reportedly begun investigating users suspected of gambling illegally through the platform. KCSC has formally launched its review but has not disclosed the value of the transactions involved. If it ultimately finds the platform illegal, it may order South Korean internet service providers to block it directly.

Polymarket is a prediction market where users trade on event outcomes using crypto assets. It has long faced regulatory scrutiny over anonymous participation and its gambling-like model. The platform reached a settlement with the U.S. Commodity Futures Trading Commission on January 3, 2022, paying a $1.4 million penalty and agreeing to shut down noncompliant markets. Its approach to KYC will therefore be central to whether it can enter regulated financial markets.

As of July 19, 2026, Polymarket was reportedly considering mandatory KYC and had geoblocked 35 countries, including Russia and North Korea, to reduce the risks of illegal gambling and sanctions evasion. A company executive, however, recently clarified that identity verification was limited to a beta product under testing and had not been rolled out across the existing platform. A formal launch date and the scope of any requirements have yet to be announced.

Polymarket uses crypto assets to trade contracts tied to event outcomes. Supporters view it as a crowd-forecasting tool, while critics argue that it is essentially a form of gambling. Indonesia bans all gambling, and President Prabowo Subianto’s term is scheduled to run until October 2029. Indonesia’s classification of the platform also highlights its divergence from the U.S. Commodity Futures Trading Commission, which allows regulated event-contract markets to operate.

On May 21, 2026, Polymarket launched markets on whether Prabowo would leave office by May 31, June 30 or the end of the year. Trading volume exceeded $46,000, while the probabilities for the three outcomes reached 1%, 2% and 18%, respectively, at one point. Indonesia’s Ministry of Communication and Digital Affairs formally blocked the website on May 22, saying wagers involving money on uncertain events violated the online gambling ban. It was also investigating social media accounts linked to the platform.

Prediction markets such as Polymarket allow users to wager money on event outcomes, combining information aggregation with gambling-like features. Operators are targeting the vast retail markets of China, Japan and India, but differing legal definitions of gambling, financial products and crypto assets have made regulatory compliance central to their expansion plans.

The latest reports indicate that Polymarket has begun laying the groundwork for an expansion into Japan and plans to lobby the government to allow prediction markets, aiming to secure an operating license by 2030. Despite strict gambling rules in China, Japan and India, the platform is pursuing a strategy similar to that adopted by the crypto industry in its early years: establish a market first, then push for a clear regulatory framework.

Prediction markets allow users to wager through contracts on the outcomes of elections, sporting contests and other events, but they may be treated as regulated gambling in the Netherlands. The Dutch Gambling Authority (Ksa) blocked Polymarket in February 2026 for operating without a gambling license, highlighting the challenges of cross-border enforcement and investor protection involving decentralized platforms.

An investigation by Dutch financial newspaper FD found that, as of May 5, 2026, users in the Netherlands could still trade prediction contracts through Kalshi, Hyperliquid and Interactive Brokers. Hyperliquid has also recently expanded its local services. The Ksa warned that similar platforms could face penalties, while an April study by London Business School found that only 3% of participants were consistently profitable and nearly 70% lost money.