Those looking to engage in crypto betting on various events like Seoul rainstorms are out of luck as South Korean authorities have cracked down on Polymarket, deeming it illegal gambling.
South Korea has strict laws against gambling, with domestic betting considered a serious offense under the Criminal Act and National Sports Promotion Act. When regulators noticed locals using digital tokens to speculate on anything from local weather to global politics, they took action to block access to the platform.
“We Turned Off the Korean Language!” (Nice Try)
In an attempt to evade legal consequences, Polymarket removed Korean language support from its site and does not accept payments in Korean won. They also argued that their platform operates on non-custodial smart contracts, meaning they do not directly handle user funds or issue gambling tickets like traditional bookmakers.
However, the Korean communications commission dismissed these arguments, emphasizing that simply removing language options or relying on blockchain technology does not exempt anyone from adhering to local laws. They pointed out that Polymarket still controls the order books, establishes rules, and profits from transaction fees.
South Korea is now among the 30 countries, including France, Germany, and Australia, that have banned the platform.
Bad News for the Esports Betting Crowd
The ban has significant implications for South Korea’s gaming and esports community, known for its fervent support of games like League of Legends, Valorant, and StarCraft.
Platforms like Polymarket have become popular among esports fans seeking to trade shares on match outcomes or predict tournament results. With access now restricted, South Korea has effectively shut down decentralized esports betting for its residents.
Gamers who used crypto to bet on esports events are now left with limited options, either turning to local alternatives or sticking to casual discussions in online forums.
The restrictions on global prediction markets are tightening, leaving Korean gamers who enjoyed betting on esports outcomes with few alternatives.