South Korea has blocked local access to the prediction market Polymarket, joining more than 30 jurisdictions that have restricted or banned the platform amid a global crackdown on crypto-based betting services.
The restriction adds to the growing list of countries that have moved against Polymarket, which allows users to trade on the outcomes of real-world events including elections, sports, and economic indicators. South Korean authorities cited violations of the country's Criminal Act and National Sports Promotion Act as the basis for blocking access.
Why South Korea Acted
South Korean regulators rejected Polymarket's defense regarding its peer-to-peer nature, arguing that the platform's operations fall under existing gambling and sports betting prohibitions. The country's National Sports Promotion Act restricts unauthorized sports betting, while the Criminal Act prohibits unlicensed gambling operations. Authorities determined that Polymarket's event contracts, particularly those tied to sports outcomes, violated these provisions.
The decision follows similar actions by other countries. More than 30 jurisdictions have now restricted access to Polymarket, including France, which blocked the platform in January 2026. The growing list reflects concern among regulators about the rapid expansion of prediction markets and their intersection with gambling laws. For context on how prediction markets are growing despite regulatory pressure, see our coverage of crypto regulatory developments.
The Global Crackdown on Prediction Markets
Prediction markets have grown explosively in 2026, with combined monthly volume across Kalshi, Polymarket, and Polymarket US reaching $50.6 billion in July. Kalshi led with $37.7 billion in volume, while Polymarket's international and U.S. platforms generated a combined $12.9 billion. The FIFA World Cup drove significant trading activity, with World Cup-related markets generating approximately $20 billion from January through the tournament's conclusion.
Despite this growth, regulators worldwide have expressed concern about the legal status of prediction market contracts. The core question is whether event contracts qualify as federally regulated derivatives or fall under state gambling laws. Different jurisdictions have reached different conclusions, creating a fragmented regulatory landscape that platforms must navigate.
Legal Battles in the United States
While South Korea has blocked Polymarket entirely, the situation in the United States remains more complex. New York sued Kalshi on July 31, accusing it of running an illegal, unlicensed gambling operation. The state is seeking an order stopping the platform from offering unlicensed event contracts, along with fines, forfeiture, and customer restitution.
However, a Minnesota federal judge issued a temporary injunction on July 26 stopping the state from enforcing its prediction-market law against Kalshi and Polymarket US. The court found that the platforms were likely to succeed on part of their federal-preemption case, though the judge warned that not every event contract necessarily qualifies as a federally regulated swap. For more on how crypto platforms are engaging with regulators, read our reporting on SEC regulatory developments.
How Polymarket Operates
Polymarket operates as a decentralized prediction market built on the Polygon blockchain, allowing users to trade shares representing the probability of real-world outcomes. The platform uses an automated market maker system to price contracts, with shares trading between $0 and $1 and settling at either $0 or $1 depending on the outcome.
The platform's peer-to-peer structure has been central to its legal defense in some jurisdictions, with operators arguing that it functions as a neutral marketplace rather than a gambling operator. However, regulators have increasingly rejected this framing, noting that the platform facilitates betting on outcomes that fall under existing gambling regulations.
What This Means for the Industry
South Korea's action against Polymarket signals that the global regulatory crackdown on prediction markets is intensifying. With more than 30 jurisdictions now restricting access, platforms face an increasingly narrow set of markets where they can operate freely. The contrasting legal outcomes in different U.S. states and international jurisdictions highlight the lack of consensus on how prediction markets should be regulated.
The growth of prediction market volume suggests strong user demand, but the regulatory response indicates that platforms will need to work within existing legal frameworks or face continued restrictions. As prediction markets become more mainstream, the tension between innovation and regulation is likely to define the industry's trajectory in the coming months.
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