South Korea has given Polymarket a chance to defend its operations before regulators decide whether to seek corrective action over concerns that the prediction market platform may violate the country’s gambling laws.
summary
- South Korean regulators will hear Polymarket’s response before deciding on possible corrective action.
- Authorities are reviewing whether the platform’s prediction markets violate the country’s gambling laws.
- The review follows a previous police investigation into Polymarket users in South Korea over alleged illegal gambling.
The Broadcasting, Media and Communications Review Commission said on Monday it would listen to Polymarket’s explanation before reaching a final decision on a remedial request linked to the platform’s legality and service model. According to a machine translation of the committee’s statement, the regulators decided to allow the company to present its position so that they can fully examine Polymarket’s legal status and how its services work.
Instead of issuing an immediate recommendation, the committee said it wanted to check whether the platform’s activities fall within South Korea’s legal framework governing online gambling-related services. The review could determine whether the authorities will continue to take corrective action against the platform.
Regulators are reviewing whether Polymarket is violating gambling laws
National Gambling Control Commission Act in South Korea Classify Illegal gaming businesses as services facilitate speculative online gambling. The law also gives regulators the authority to identify, monitor and respond to companies that may fall into this category.
As part of this review, authorities are assessing whether Polymarket’s prediction markets comply with local regulations. The committee’s decision to request the company’s response comes before any final recommendation for implementation is made.
Outside of South Korea, Polymarket already restricts access to multiple jurisdictions. According to the company, users are in 33 countries Not accessible Its platform, including the United States, the United Kingdom, France, Germany, Brazil, Singapore, Japan and Australia. Polymarket says these restrictions are designed to comply with sanctions, local financial regulations, gambling market and forecasting laws, anti-money laundering requirements and “know your customer” rules.
The company also blocks access to specific regions within supported countries, including Alberta, British Columbia, Ontario and Quebec in Canada, along with Crimea, Donetsk and Luhansk in Ukraine.
The authorities expanded the scope of scrutiny beyond individual users
The interest of South Korean authorities has increasingly moved beyond local users to the platform itself. The latest review comes on the heels of a previous criminal investigation involving users from South Korea who allegedly participated in election-related prediction markets that authorities deemed illegal gambling.
On June 5, Gangwon Provincial Police opened what local media described as the country’s first investigation into local PoleMarket users over suspected illegal gambling. According to those reports, the National Police Agency has requested an investigation.
South Korean law imposes financial penalties and possible prison sentences for gambling-related crimes. Under the country’s criminal law, gambling can result in a fine of up to 10 million won (about $6,500), while habitual gambling could result in a prison sentence of up to three years or a fine of up to 20 million won. Separately, operating a gambling venue for profit is punishable by imprisonment of up to five years or a fine of up to 30 million won.
At this time, the Audit Committee has not announced any enforcement action against Polymarket. Instead, regulators chose to consider the company’s explanation before deciding whether corrective measures should be requested, leaving the platform’s status in South Korea dependent on the outcome of this legal assessment.
