South Korea Review Board Delays Polymarket Sanctions Decision to Hear Operator

The Korea Communications Standards Commission will first hear from Polymarket's operator before deciding whether to seek corrective action against the overseas blockchain-based prediction market platform.

The commission's Communications Review Subcommittee said after a July 6 meeting that it would give the company an opportunity to present its views before making a final ruling on corrective measures.

Polymarket is a blockchain-based prediction market where users trade yes-or-no outcomes on topics including politics, the economy, international affairs, sports, elections and weather. Users deposit stablecoins such as USDC to participate. If their prediction is correct, they make a profit; if not, they lose their stake.

That business model has drawn persistent criticism in South Korea that the platform is effectively akin to speculative gambling.

The commission said it opted to hear the operator's views to better assess Polymarket's legality and how the service is run. It plans to make a final decision after comprehensively reviewing the company's submission and related materials.

Industry participants view the opinion-hearing process as a watershed for South Korea's approach to regulating overseas prediction market platforms. Polymarket is one of the world's largest such platforms, with trading linked to events including the U.S. presidential election, interest rates and cryptocurrencies.