South Korea has decided to block domestic access to Polymarket after regulators concluded the prediction-market platform effectively creates a gambling environment for users in the country.

The Korea Communications Standards Commission approved a corrective order at a telecommunications review subcommittee meeting, saying the service’s structure and settlement model could aid gambling and promote speculative conduct under South Korean law.

Regulator’s decision

According to the commission, Polymarket was judged to be information that aids gambling or is intended to open a gambling venue under the Criminal Act. The regulator also said the platform falls under information intended for “similar acts” under the National Sports Promotion Act.

The decision means access to the platform will be blocked domestically. The measure was approved through a corrective order rather than presented as a criminal ruling on its own.

Why Polymarket was targeted

The commission said users on Polymarket face financial gains or losses based on outcomes they cannot control. In its view, that creates a winner-takes-all profit-and-loss structure that encourages speculative behavior.

Authorities also pointed to the platform’s operating model in reaching their conclusion. The review cited Polymarket’s market creation process, trading rules, and its systems for digital-asset deposits, withdrawals, and settlement as important factors behind the order.

Input from other agencies

Before making its decision, the commission gathered opinions from related agencies. Those agencies reportedly said Polymarket’s operating model could violate domestic laws that govern the opening of gambling venues and gambling-related offenses.

That interagency review appears to have reinforced the commission’s view that the platform should be treated as unlawful gambling-related information for access-control purposes.

Part of a wider pattern

South Korea is not the only country to restrict access to Polymarket. The source article says France, Australia, and Germany have also blocked access to the platform.

The next confirmed step in South Korea is the implementation of the approved corrective order blocking domestic access. The information provided does not state when the block will take effect or whether Polymarket plans to challenge the measure.

Source: en.bloomingbit.io