Taiwan Blocks Coinbase and Kalshi Ahead of November Elections

yesterday / 22:28 2 sources neutral

Key takeaways:

  • Taiwan's Coinbase block signals rising regulatory fragmentation risk for crypto exchanges in election-sensitive jurisdictions.
  • Coinbase's inclusion suggests crypto platforms face broader election-gambling scrutiny, pressuring COIN sentiment short-term.
  • Watch for Taiwanese users shifting to DEXs, a structural risk to centralized exchanges' regional growth.

Taiwan has ordered domestic internet providers to block access to cryptocurrency exchange Coinbase and US prediction-market operator Kalshi over suspected illegal election wagering, escalating enforcement weeks before nationwide local elections scheduled for November 28, 2026. The New Taipei court authorized the restrictions at the request of Taiwan's Criminal Investigation Bureau, according to Bloomberg reporting published October 15.

Coinbase users in Taiwan began reporting access problems on October 14, roughly six weeks before voters select mayors, councilors and other local officials. The bureau said both platforms were suspected of violating Taiwan's Public Officials Election and Recall Act, which prohibits operating gambling activities for profit based on election or recall outcomes. Authorities said the intervention was intended to protect election integrity and prevent overseas interference, though they did not disclose specific evidence connecting either company to attempted electoral manipulation.

Taiwan strengthened its election gambling restrictions through amendments introduced in 2023. Bettors can face imprisonment of up to six months, while operators facilitating prohibited election betting risk sentences of up to five years. Polymarket, Kalshi's main prediction-market competitor, has also been blocked in Taiwan. The inclusion of Coinbase is particularly significant because the company primarily operates a cryptocurrency exchange rather than a dedicated election prediction market.

Coinbase acknowledged that its domain had become inaccessible to some Taiwanese users, said it was investigating the disruption, and was unaware of receiving formal notification. Kalshi stated that Taiwan had already been designated a restricted jurisdiction on its platform, meaning Taiwanese customers were not authorized to trade through its service even before the latest website restrictions.

The November 28 elections will determine 11,051 local government positions across 8,906 electoral districts, with approximately 19.65 million eligible voters and 18,244 planned polling stations. The restrictions highlight how local laws can restrict access to crypto and prediction-market platforms even when they operate legally elsewhere.

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