Don't want to trade it yourself?
Our desk runs DEX portfolios on profit share.
Crypto Regulation News
South Korean regulators have ordered Polymarket to be blocked within the country’s borders, ruling that the crypto prediction market operates an illegal gambling environment under existing national law.
The Korea Communications Standards Commission issued the order on Aug. 18, citing two separate statutes. The first is a Criminal Act provision covering the facilitation of gambling and the opening of gambling venues. The second is the National Sports Promotion Act, which prohibits analogous betting activity. The regulator concluded that Polymarket’s winner-takes-all format, in which users stake money on outcomes tied to politics, sports, and weather events, meets both definitions.
Platform’s Defense Falls Short
Polymarket submitted arguments to the commission before the ruling was issued. The platform said it had already removed Korean-language services and does not accept payments in Korean won. It also pointed to its noncustodial architecture, arguing that because transactions run through smart contracts and the platform does not directly hold user funds, it should not be treated as a gambling operator under South Korean law.
Related Article: South Korea Report Calls for Stablecoin Rules Before Crypto Law
The commission rejected each of those points. It said technical design choices, including decentralization, trading interfaces, and order book structures, do not grant exemptions under South Korean law. Regulators also cited Polymarket’s operational role in setting trading rules, running markets, facilitating crypto deposits and withdrawals, and collecting transaction fees, concluding that this level of involvement constitutes operation of a gambling-like service regardless of the underlying technology.
Other Countries Have Reached Similar Conclusions
South Korea joins a group of countries that have moved to restrict Polymarket access. France, Australia, Germany, and Ukraine have each taken action against the platform on gambling-related grounds.
The commission did not specify penalties for users who attempt to bypass the block, nor did it outline any direct enforcement measures targeting Polymarket as a company. The order applies to access from within South Korea.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
Source: coinmarketcap.com