South Korea to hear Polymarket's defense before deciding on a block

South Korea’s media regulator, the Korea Communications Standards Commission (KCSC), is considering banning Polymarket in the country, but it will let the company argue its case before deciding.  

The main issue is whether or not the crypto prediction market breaks South Korea’s gambling laws. South Korean law bans nearly all gambling except state-run channels like horse racing and the lottery.

Why does South Korea want to ban Polymarket? 

The Korea Communications Standards Commission (KCSC), a body that polices harmful online content, said on July 6 that it wants to do due diligence before making a decision on whether or not to restrict South Koreans’ access to prediction platforms. 

The KCSC has the authority to order internet providers to block a site outright. 

The committee’s telecommunications deliberation subcommittee has invited Polymarket’s operator to submit a formal response, and only after reviewing that response and related materials will the commission decide if it will request corrective action against the platform.

Polymarket lets users buy YES or NO positions on the outcome of real-world events, including elections and sports matches. Traders put up stablecoins such as USDC to take a side. Critics have long argued the platform functions as speculative betting in all but name, and South Korean law bans nearly all gambling outside a handful of state-run channels like horse racing and the lottery.

Still, the commission said it wants to establish how the service actually works before deciding if it should be illegal. 

If the KCSC concludes Polymarket is running an illegal gambling service, a block would put South Korea alongside other countries with restrictions like France, Germany, Italy, India, Brazil, Australia, Argentina, and Indonesia, according to Cryptopolitan’s earlier reporting. 

Spain’s Consumer Rights Ministry imposed a temporary ban on Polymarket and its rival Kalshi in May over the absence of gambling licenses.

Why are prediction market platforms rejecting the gambling label?

Operators of prediction platforms have pitched them as forecasting tools that surface useful information, but regulators increasingly see users wagering crypto on uncertain outcomes and call it gambling. 

Seoul is one of Asia’s largest crypto markets, and once the KCSC finishes reviewing Polymarket’s response, its decision will signal how it intends to treat the entire category.

For instance, in June, Cryptopolitan reported that South Korean police had opened the nation’s first criminal case targeting local Polymarket users. Cyber units traced transactions to identify who had placed bets following a spike in trading around the June 3 national election. Under Article 246 of the Criminal Act, illegal betting can draw fines of up to 10 million won. 

Prediction markets have grown from a crypto niche into a business with real money behind it. Global trading volume tripled year-over-year to roughly $51 billion in 2025, according to Bernstein data cited by Cryptopolitan. Some analysts even project the market could reach $1 trillion by 2030.

If you're reading this, you’re already ahead. Stay there with our newsletter.