South Korea blocks Polymarket, citing illegal crypto gambling

South Korea has pulled the plug on Polymarket, blocking local access to the blockchain-based prediction market platform. The country’s media and communications regulator made the move on August 18, classifying the platform’s core product as illegal gambling under domestic law.

Seoul now joins more than 30 jurisdictions worldwide that have restricted or outright banned access to Polymarket.

How we got here

This wasn’t a snap decision. The Korea Communications Standards Commission opened a formal review back in May 2026, tasked with answering a seemingly simple question: does Polymarket constitute illegal gambling under South Korean law? Proceedings kicked off on July 6, and by mid-August, regulators had their answer. It does.

The legal basis is straightforward. South Korea’s Criminal Act, specifically Article 246, and the National Sports Promotion Act collectively draw tight boundaries around permissible betting. The country allows only a handful of state-sanctioned gambling activities. Everything else, including trading shares on the outcomes of real-world events using digital assets, falls on the wrong side of the line.

In early June 2026, the Gangwon Provincial Police Agency launched a criminal investigation targeting Polymarket users who had placed bets connected to local elections held that same month. Police dug into digital asset transactions tied to the platform.

The penalties for getting caught aren’t trivial by everyday standards. Illegal gambling participation in South Korea carries fines of up to 10 million won, roughly $8,400.

Why Polymarket keeps drawing fire

Polymarket’s visibility surged during the 2025-2026 election cycle. The platform’s real-money prediction markets on political outcomes attracted global attention. In South Korea, where gambling laws are among the strictest in Asia, that kind of attention was always going to end one way.

The platform lets users buy and sell shares representing the probability of specific events occurring, with payouts determined by the actual outcome.

South Korea isn’t alone in this interpretation. Indonesia blocked access to Polymarket earlier in 2026, and the platform has faced varying degrees of restriction across dozens of other regions.

What makes South Korea’s case particularly notable is the election angle. The police investigation running parallel to the KCSC review created a one-two punch that left little room for ambiguity about the government’s stance.

What this means for prediction markets

Polymarket remains accessible in some Asian markets despite the South Korean and Indonesian bans. But the trend line is clear. More than 30 jurisdictions have now taken action, and each new ban provides a template for the next regulator considering similar moves.

The election-linked criminal investigation suggests that South Korean authorities are willing to pursue individual users, not just platforms.

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