South Korea delays Polymarket decision amid law review

South Korea is reviewing Polymarket for possible illegal gambling, delaying enforcement to hear the platform’s response. The decision may set a precedent for regulating blockchain-based prediction markets.

South Korean authorities are thoroughly reviewing Polymarket, a blockchain-based prediction market platform, to assess potential violations of the country’s strict anti-gambling laws. The Korea Communications Standards Commission and related regulators have delayed enforcement, choosing to first consider Polymarket’s formal response before making a final decision. This review follows police investigations into local users, especially regarding election-related betting. It marks the first known enforcement action against users of a decentralized prediction market in South Korea. Authorities are examining whether Polymarket’s event-based contracts qualify as illegal gambling under Korean law, which prohibits most gambling except for state-run activities. The outcome of this review could set significant precedents for regulating offshore blockchain-based wagering platforms in South Korea and possibly other countries. Regulators stress due diligence, considering both the legality and operational structure of Polymarket, as international scrutiny of prediction markets grows.