South Korean regulators investigate Polymarket for alleged violation of anti-gambling law

On May 22, according to Bloomberg, the Korea Communications Standards Commission has launched a formal review into whether the prediction market platform Polymarket offers illegal gambling content, assessing whether its services constitute gambling and violate domestic laws. South Korea's current anti-gambling laws restrict gambling to state-authorized institutions such as horse racing and sports betting. Prediction market platforms like Polymarket argue that they do not set odds, and prices are formed by users buying and selling contracts, thus they should not be considered gambling. The platform currently has multiple transactions related to the results of South Korea's June local elections available, where users can bet with crypto assets. The report also states that Polymarket has encountered regulatory restrictions in multiple countries during its global expansion, and recently appointed a local representative in Japan for future license applications.