The Korea Communications Standards Commission is beginning a XEM of the decentralized prediction platform Polymarket to determine whether the service XEM as an illegal gambling website under Korean law. This move reflects South Korea's increased scrutiny of global prediction market platforms, particularly in light of the booming blockchain-based betting sector over the past two years.
According to local media, a complaint regarding Polymarket was filed with regulators on May 21, triggering a formal review process. South Korean officials said they are further analyzing international regulatory cases related to the platform and assessing whether Polymarket promotes gambling activities.
Polymarket is a blockchain-based prediction market platform that allows users to bet on the outcomes of various real-world events such as the US presidential election, the Federal Reserve's interest rate decision, Bitcoin prices, sporting events, or global economic fluctuations. Users use stablecoins to participate in predictions and will receive rewards based on the final outcome of the event.
During the 2024 US election period, Polymarket attracted significant attention as volume related to the race between incumbent President Donald Trump and his opponents surged to billions of dollars. Many investors XEM the platform as a “market reflecting real-world probabilities” rather than simply a traditional betting tool. After Trump won the election in late 2024 and returned to the White House, interest in prediction markets continued to grow sharply as investors sought to predict new policies related to crypto, interest rates, and international trade.
Currently, Polymarket is still accessible in South Korea without significant restrictions. Notably, the platform supports a Korean language interface, which could lead regulators to XEM it as a service directly targeting domestic users. According to Korean law, even if the servers are located overseas, a platform can still fall under regulation if it provides services to Korean citizens or supports a native language.
