South Korean police have expanded their investigation into Polymarket by issuing notices to appear to users across the country, marking the latest escalation in the country's crackdown on the blockchain-based prediction market platform.
According to police, the Gangwon Provincial Police Agency sent notices on September 7 to domestic Polymarket users under investigation for suspected illegal gambling. The probe, which began in June, is believed to be South Korea's first nationwide investigation targeting users of the platform.
Polymarket allows users to wager cryptocurrency on the outcomes of real-world events, including elections, sports, economic indicators and social issues. South Korean authorities maintain that the platform constitutes private gambling, which is prohibited under the country's laws.
Last month, regulators ordered internet service providers to block access to Polymarket after concluding that its winner-takes-all prediction contracts fall within the scope of the Criminal Act and the National Sports Promotion Act.
The Korea Communications Commission also rejected arguments that the platform falls outside domestic jurisdiction because it no longer offers a Korean-language interface or accepts payments in Korean won, noting that users could still place bets on Korea-related events.
Under current legislation, betting is generally prohibited outside government-authorized products such as Sports Toto, with individuals found participating in illegal gambling facing fines of up to KRW10m (US$7,429).
The investigation has sparked debate over the legal status of prediction markets. Lawyers representing some users argue that Polymarket functions as a virtual asset derivatives market rather than a gambling platform and contend that applying gambling laws to the service is inappropriate in the absence of specific regulatory guidance.
The latest developments form part of South Korea's broader efforts to combat illegal online gambling and scam-related activities. Earlier this month, authorities also introduced a nationwide youth gambling reporting program while continuing enforcement actions against unauthorized online gambling services.
South Korea joins several other jurisdictions, including France, Australia, Brazil and Ukraine, that have restricted access to Polymarket as regulators continue to examine whether prediction markets should be treated as financial products or gambling services.
Access to Polymarket was blocked in South Korea last month following a regulatory review
