South Korea ordered internet providers to block domestic access to Polymarket after the Broadcasting, Media and Communications Review Committee voted on Aug. 18 to classify the crypto-based prediction market as an illegal gambling environment under the National Sports Promotion Act. The committee reached that conclusion after reviewing how Polymarket builds its markets, sets trading rules, and processes crypto deposits and withdrawals. The order affects anyone in South Korea trying to trade on the platform, whether they fund it with Bitcoin, Ethereum, or stablecoins.
Why Regulators Call Polymarket Illegal Gambling
The committee’s subcommittee found that Polymarket provides information that can facilitate gambling or the operation of a gambling venue under South Korea’s Criminal Act, with some activity also falling under the National Sports Promotion Act’s rules on similar prohibited conduct.
Regulators pointed to the platform’s structure rather than just user behavior. Polymarket lets traders buy shares tied to the outcome of events in politics, economics, sports, and weather, a setup the committee said can produce large financial gains or losses tied to events users cannot control. It described the winner-takes-all payout model as encouraging speculative gambling.
The review also examined who controls the platform’s mechanics. Although trades happen between users, the committee said Polymarket manages market creation, sets trading rules, and runs the infrastructure for deposits, withdrawals, and settlement, meaning user funds are effectively collected and distributed through the platform.
Regulators also noted the transaction fees Polymarket collects on share trading as evidence the operator profits from the activity. Polymarket has argued its non-custodial model, where trades settle through smart contracts between users, sets it apart from a conventional gambling operator. The committee rejected that distinction, stating that a service’s technical design does not exempt it from South Korean law once it is accessible to local users.
What This Means for South Korean Crypto Traders
Anyone in South Korea with open positions on Polymarket should expect access to be cut off once the block takes effect. Traders weighing how prediction markets fit into a broader crypto portfolio can find more regulatory coverage on our crypto news hub, which tracks how governments across Asia and Europe are treating platforms like Polymarket.
Whether Polymarket Appeals the Block
The committee has not said how quickly South Korean internet providers will carry out the block or whether Polymarket plans to challenge the ruling. South Korea now joins a growing list of jurisdictions restricting the platform over its gambling classification.
Brazil moved first, when Brazil’s ban of 27 prediction market platforms, including Polymarket and Kalshi, took effect in April under a National Monetary Council resolution that bars derivatives tied to sports, political, or cultural outcomes. Brazil’s Finance Ministry framed the sweep as consumer protection, warning that prediction markets could deepen household debt if left unregulated.
Spain followed in May, with Spain’s ban on Polymarket and Kalshi, after regulators found neither platform held the domestic gambling license required to offer event-based trading to Spanish users. South Korea’s committee is applying a similar logic, treating Polymarket’s payout structure as a gambling product rather than a financial one.
What this means for you: If you trade on Polymarket from South Korea, access is ending, not merely under review, so check your open positions and withdrawal options before the block takes effect.
