The Trump administration in the United States is embracing prediction markets and unconventional trading tied to sports, pop culture, and politics. While the US is moving in this direction, many other major economies are looking to restrict or ban these platforms.
President Trump recently stated at the White House that the US will be at the forefront of advancing prediction markets.
Despite concerns about insider trading and misuse of confidential information, President Trump’s administration is moving forward to allow federally regulated prediction markets to provide non-traditional options.
On the contrary, many economic powerhouses are looking to ban prediction markets.
South Korea Prohibits Polymarket
Polymarket, based in New York, is the largest prediction market globally outside of the US. However, it has faced another ban in South Korea.
The Korea Media and Communications Commission (KMCC) decided to block access to Polymarket, citing illegal gambling activities. The regulators found Polymarket in violation of the Criminal Act and the National Sports Promotion Act.
As per the vote, internet service providers (ISPs) are required to restrict access to the Polymarket website and app with immediate effect.
Polymarket’s winner-take-all structure encourages gambling by making users’ financial gains or losses depend heavily on the outcomes of events they cannot control, such as politics, the economy, international affairs, sports, elections, and weather,” the KMCC ruled.
In South Korea, using a virtual private network (VPN) to bypass the ISP barrier and access Polymarket is considered a crime punishable by a fine of up to KRW10 million (US$7,200).
G20 Crackdown
South Korea is the latest G20 nation to restrict access to Polymarket, following France’s lead in July.
Spain, Argentina, and Indonesia have also blocked Polymarket through ISP directives. Additionally, G20 countries like Australia, Brazil, Germany, Italy, Japan, Russia, Thailand, and the United Kingdom have imposed restrictions on the prediction market. Four Canadian provinces – Alberta, British Columbia, Ontario, and Quebec – have banned Polymarket as well.
The G20 is a forum of 19 countries, the European Union, and the African Union working on global economic issues and financial stability. G20 members represent a significant portion of the world’s GDP and population.
South Korea is the 40th jurisdiction to block Polymarket. For the complete list, click here.