South Korean police have launched an investigation into local users of Polymarket, a cryptocurrency-based prediction market platform, over allegations of illegal gambling. The probe intensifies regulatory pressure on the platform as it expands across Asia.
The investigation targets residents who have used Polymarket, which allows users to trade contracts based on the outcomes of real-world events. South Korean authorities classify such activity as potentially illegal under the country's strict gambling laws.
Polymarket operates globally but faces increasing scrutiny in Asia, where regulators have questioned whether prediction markets constitute unregulated gambling or betting platforms. The platform gained prominence during the 2024 U.S. election cycle as a venue for event-outcome trading.
South Korea maintains some of the world's most restrictive gambling regulations. The country generally prohibits online gambling and betting on outcomes of events, with limited exceptions for state-licensed operations.
The investigation adds to mounting pressure on cryptocurrency platforms offering financial derivatives and prediction markets. Regulators worldwide continue evaluating whether such platforms require licensing and oversight similar to traditional financial or gambling operations.
Polymarket has not publicly responded to the Korean investigation. The platform's expansion into Asian markets coincides with increased regulatory attention across multiple jurisdictions.
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