What to know:
- South Korean police investigate Polymarket users over alleged gambling activities.
- The probe targets domestic users, not platform operations directly.
- Regulatory pressure on Polymarket increases across several Asian markets.
- Company continues regional expansion despite growing legal challenges.
South Korean police have launched an investigation into local Polymarket users over alleged illegal gambling activities. The probe follows growing regulatory scrutiny of prediction markets linked to real-world events. While facing restrictions in South Korea and Indonesia, Polymarket continues expanding its presence across Asia, including plans for Japan.
South Korean Police Open Investigation Into Polymarket Users
South Korean police have launched an investigation into local users of Polymarket over allegations of illegal gambling.
The probe comes as the cryptocurrency-based prediction market platform faces increasing regulatory attention across Asia.
Authorities are examining whether participation in certain markets offered through the platform may violate the country’s gambling laws.
The Gangwon Provincial Police initiated the investigation following a request from the Korean National Police Agency. According to the cyber investigation unit, the focus remains on individuals within South Korea who used the platform.
Officials have not disclosed how many people are currently under investigation as the South Korean Police continue examining the case. Local media outlet Chosun Biz first reported the development.
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Election-Related Markets Draw Regulatory Attention
Polymarket allows users to place cryptocurrency-backed predictions on real-world events, including politics, sports, and public affairs. The platform has attracted global attention through markets tied to major political developments and public events.
In May, South Korea’s media regulators reviewed Polymarket’s hosting of illegal gambling-related content. This occurred after contracts related to South Korea’s upcoming local elections on June 3 local elections.
South Korea strictly regulates gambling and only allows a few types of betting through state-sanctioned channels. Activities outside those sanctioned by the government can be investigated by law enforcement.
Moreover, the ongoing investigation by the police and the media regulator adds to the pressure being exerted upon Polymarket and how Polymarket is being evaluated by the Korean government.
The regulatory issues Polymarket faces extend far beyond South Korea, as authorities in Indonesia banned it later in May, deeming it a type of internet gambling.
The ban came after there was considerable attention on social media regarding a prediction market about whether or not President Prabowo Subianto would finish his term early.
Despite the challenges, the New York-based company continues to push for growth in Asia. They just appointed a rep in Japan to drive their expansion there. Plus, they’re prepping to apply for permission to launch prediction markets in the country.
While Asian regulators ponder the legality of prediction markets, Polymarket tries to expand but bumps into strict gambling laws and intense oversight.
It’s hard to grow when you’re caught between wanting to innovate and the forces of regulation and national rules.
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