Taiwan Blocks Coinbase and Kalshi Over Election Betting Markets
Authorities restrict access to prediction platforms to prevent potential interference in upcoming local elections.
1Judicial Blockade Initiated
The New Taipei District Court issued a criminal order blocking access to Coinbase and Kalshi websites starting October 14. This action follows a request from Taiwan’s Criminal Investigation Bureau to safeguard the integrity of the November 28 local elections. Regulators are enforcing strict measures to prevent unauthorized overseas interference in domestic political processes.
2Legal Framework and Penalties
Taiwan’s Public Officials Election and Recall Act imposes severe penalties for election-related gambling. Under a 2023 legal amendment, individual bettors face up to six months in prison, while platform operators risk up to five years of incarceration. Authorities are actively utilizing these statutes to justify the current internet service provider restrictions.
3Kalshi's Market Paradox
Despite Kalshi’s member agreement explicitly listing Taiwan as a restricted jurisdiction, the platform continues to host active markets on Taiwanese political races. The Taipei mayoral market currently features approximately 198,000 contracts. This discrepancy between platform policy and actual market availability remains a central point of contention for local judicial authorities.
4Coinbase Access Issues
Coinbase users in Taiwan reported being unable to access the platform, encountering a block page citing the court order. A company spokesperson confirmed they are investigating the access disruptions. While the platform is under scrutiny, officials have not explicitly accused Coinbase of facilitating illicit fund transfers from mainland China during this investigation.
5Precedent of Polymarket Bans
Taiwanese authorities previously blocked Polymarket in December 2023 and again in May 2026 under similar legal rulings. Despite these repeated blocks, Polymarket continues to list numerous markets on local races, with its Taipei mayoral market recording roughly 1.14 million shares traded. This demonstrates the persistent challenge of enforcing domain blocks against decentralized platforms.
6Prosecution of Individual Bettors
Prosecutors are increasingly tracking individual bettors by analyzing on-chain transaction flows. In one instance, a Kaohsiung resident received a 30-day detention sentence after wagering 742.96 USDC on election outcomes. Another bettor in Tainan avoided prosecution by paying a 100,000 NTD fine to the state treasury, highlighting the state's aggressive stance toward participants.
7Regional Regulatory Trends
Taiwan’s crackdown mirrors broader regional efforts to curb prediction markets. Indonesia recently blocked Polymarket over presidential election bets, while South Korean police have actively pursued users by tracing blockchain activity. These coordinated regional responses suggest a growing trend of governments prioritizing political stability over the accessibility of global decentralized prediction exchanges.
8Strategic Implications for Platforms
The ongoing conflict between prediction markets and election laws underscores the regulatory risks inherent in global fintech operations. As authorities refine their ability to trace on-chain activity, platforms face mounting pressure to enforce geofencing more effectively. Future operations in jurisdictions with strict election laws will likely require more robust compliance and verification protocols.
Original article: Bitcoin News — Taiwan Blocks Coinbase and Kalshi Over Election Betting Markets