South Korean regulatory authorities have launched an investigation into Polymarket to determine whether it has violated anti-gambling laws.

According to Bloomberg, South Korea’s Korea Communications Standards Commission has launched a formal investigation into prediction market platform Polymarket to determine whether it offers illegal gambling content and violates South Korean law. The report states that South Korea will hold local elections in June, and several Polymarket trading markets related to the election results have already emerged, enabling users to place bets on outcomes using cryptocurrency assets. South Korea enforces strict anti-gambling regulations, permitting only government-licensed forms of betting, such as horse racing and sports betting. Polymarket previously stated that its market prices are formed through participant trading, and the platform itself does not set odds.