Police have confirmed they sent a blanket notice to appear to domestic users of Polymarket, the world's largest prediction market platform, to investigate them on suspicion of illegal gambling. Polymarket is classified as private gambling in Korea and is illegal. Users counter that prediction markets are a virtual asset derivatives investment market, making it difficult to apply gambling charges.
According to police on the 8th, the Gangwon Provincial Police Agency gave a blanket notice to appear the day before to domestic Polymarket users who are currently investigating on suspicion of gambling. The subjects of the investigation are Polymarket users living nationwide, including Gangwon Province. After launching the first investigation into domestic Polymarket users in June this year, authorities have been speeding up the probe.
Polymarket is a Blockchain-based prediction market platform where users wager virtual assets on the outcomes of future events in the real world, such as politics, the economy, sports, and social issues.
The Broadcasting, Media and Communications Review Committee on the 18th of last month resolved to demand corrective action (access blocking), saying Polymarket constitutes information aimed at aiding and abetting gambling and opening gambling venues under the Criminal Act, and information aimed at "similar acts" under the National Sports Promotion Act.
Under current law, all acts of staking money on betting sites other than Sports Toto (betting limit 100,000 won), operated by the Korea Sports Promotion Foundation (KSPO), are illegal. Domestic Polymarket users may face fines of up to 10 million won under Article 246 of the Criminal Act (gambling and habitual gambling).
Jin Hyun-su, a virtual asset specialist lawyer at Descent Law Office who represents some domestic Polymarket users under investigation, said, "It seems a stretch to uniformly deem actual gambling, which corrupts public morals, and a prediction market that lacked even guidelines as the same illegal gambling. There is ample room to view prediction markets as virtual asset derivative investments, and we will counter the investigative agency's logic."