Indonesia has blocked Polymarket, labeling the crypto-based prediction market as illegal online gambling in accordance with local legislation. Authorities clarified that the use of cryptocurrency or blockchain does not alter the classification of platforms that enable users to bet on uncertain outcomes, which are still considered gambling products.
What to know:
— The Indonesian government has prohibited access to the crypto prediction platform Polymarket, categorizing it as unlawful online gambling.
— Officials noted that utilizing crypto or blockchain does not exempt platforms that permit users to place wagers on uncertain outcomes from being categorized as gambling.
— The ban in Indonesia is part of a larger initiative to regulate prediction markets across Asia, with India also imposing restrictions on Polymarket and similar services.
The Ministry of Communication and Digital Affairs in Indonesia has restricted access to Polymarket, asserting that the crypto-driven prediction market constitutes online gambling per local law. The ministry announced it has blocked access to the platform and is monitoring associated social media accounts for potential restrictions across additional digital avenues.
Alexander Sabar, the director general of digital space regulation, stated that platforms enabling users to bet money on uncertain outcomes remain gambling products, irrespective of whether they utilize blockchain technology or cryptocurrency. Polymarket allows users to trade contracts linked to actual events, including elections, sports, cryptocurrency prices, and political developments. The platform has emerged as one of the most significant crypto prediction markets, yet regulators in various jurisdictions have treated segments of its operations as gambling instead of financial market activities.
While Indonesia’s announcement did not specifically mention Kalshi, a U.S.-regulated prediction market provider, or other similar platforms, it indicated that authorities would impose limitations on services facilitating online gambling.
This directive may apply to additional prediction market platforms if Indonesian regulators find that they permit users to bet on uncertain real-world events. Indonesia’s action follows a wider crackdown on prediction markets in Asia. Recently, India blocked Polymarket after authorities categorized such platforms as forbidden online gaming, with Kalshi also potentially under examination. Separately, Polymarket is seeking approval in Japan by 2030, where stringent gambling laws restrict most betting activities outside of government-sanctioned operations.
The Indonesian ministry stated that Singapore, Brazil, and India have also blocked Polymarket, while Taiwan, Thailand, China, and Japan have enacted restrictions according to their local laws. The prediction market is also inaccessible in Ukraine, where there is no legal means for its return. The regulator advised Indonesians against engaging in or accessing digital betting activities, including markets that utilize crypto assets, due to potential financial risks and breaches of Indonesian law. The ministry asserted it will continue to collaborate with law enforcement and other relevant parties to monitor similar platforms.