South Korea’s KCSC Launches Anti-Gambling Review of 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.

Polymarket is a prediction-market platform where users trade on the outcomes of political, economic and other events, with contract prices reflecting market-implied probabilities. The Korea Communications Standards Commission is considering restricting the service over concerns that it may constitute illegal gambling and encourage highly speculative activity. The case also raises questions about where prediction markets fall within the boundaries of financial-trading and gambling regulation.

As of July 20, 2026, the commission said it would hear Polymarket's representations before deciding whether to take corrective action. It has not announced a decision date, fines or any amount involved. Polymarket already faces varying degrees of access restrictions and regulatory scrutiny in countries including the United States, Britain and France.

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.