South Korea’s Korea Communications Standards Commission (KCSC) has formally begun a review into whether the decentralized prediction market platform Polymarket violates the country’s strict gambling laws. The commission’s telecommunications subcommittee announced on Monday that it would grant Polymarket a chance to submit a formal response before reaching a final decision.
The KCSC is specifically investigating whether Polymarket’s structure and offerings constitute illegal gambling under South Korean law, which heavily restricts most forms of online betting. If the platform is found in violation, the regulator has the authority to issue corrective orders, including blocking access to Polymarket within the country. This marks the first major regulatory action against the platform in South Korea.
The review follows an earlier probe by the Gangwon Provincial Police, launched in early June, into local Polymarket users for allegedly engaging in election-related gambling. The police investigation was reportedly requested by the National Police Agency and represents the country’s first criminal inquiry into Polymarket users. Under South Korean law, gambling offences can lead to fines of up to 10 million won (around $6,500), while habitual gambling may carry prison terms of up to three years.
Polymarket, a blockchain-based platform allowing users to bet on real-world events, states that its access restrictions comply with sanctions, local financial regulations, and anti-money laundering rules. It blocks users from 33 countries, including the United States, the UK, France, and Japan, though reports suggest that U.S.-linked wallets have still traded hundreds of millions of dollars in political contracts. The KCSC’s review adds to mounting global scrutiny, with both the European Securities and Markets Authority and the U.S. Commodity Futures Trading Commission separately examining prediction market operations.
