South Korea Orders Polymarket Block Over Gambling Laws

South Korea has ordered internet service providers to block domestic access to the cryptocurrency-based prediction market Polymarket, citing violations of the country's gambling laws. The decision, announced by the Korea Communications Standards Commission on August 18, 2026, marks the latest in a series of international regulatory actions against the platform.

The commission concluded that Polymarket's operations facilitate gambling and the establishment of gambling venues under South Korea's Criminal Act, as well as prohibited analogous betting activity under the National Sports Promotion Act. Officials determined that the platform's "winnertakes-all" structure, where users can gain or lose money based on real-world events like elections, sports outcomes, and weather patterns, encourages speculative gambling behavior.

During its review, the commission focused on the role of the platform's operator. While users trade directly with one another, regulators said the operator manages market creation, sets trading rules, and provides the infrastructure for cryptocurrency deposits, withdrawals, and settlements. The collection of transaction fees from this activity was also considered...