The Korea Media and Communications Commission said Polymarket’s structure and operations amounted to illegal gambling despite its non-custodial design and smart contracts.
South Korean authorities have ordered access to Polymarket to be blocked after determining that the crypto prediction market provides an illegal gambling environment for users in the country.
The country’s media and communication review commission said Tuesday that Polymarket facilitates gambling or the opening of gambling premises under the Criminal Code, as well as similar betting activities prohibited under the National Sports Promotion Act.
The regulator said Polymarket’s winner-takes-all structure, where users can win or lose money based on outcomes including politics, sports and weather, encourages speculative gambling behaviour. It mentions Polymarket’s role in operating markets, setting trading rules, providing crypto deposits, withdrawal and settlement systems and collecting transaction fees.
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