Taiwan has blocked domestic access to prediction-market platform Kalshi and crypto exchange Coinbase following a court ruling, Bloomberg reported on October 15. The restrictions were authorized by a New Taipei court at the request of Taiwan's Criminal Investigation Bureau, which cited suspected violations of the Public Officials Election and Recall Act.
The action precedes Taiwan's November local elections. Under Taiwanese law, betting on election results carries criminal penalties, including when wagers occur online. The Criminal Investigation Bureau stated its reasons for seeking the restrictions included maintaining election integrity and preventing foreign interference, though no evidence was provided suggesting either platform handled funds from China.
Taiwan's Election-Betting Enforcement Framework
Article 103-1 of Taiwan's election law specifically addresses placing bets over the internet and electronic communication regarding election or recall results. Individuals placing such bets face up to six months imprisonment on summary conviction, while those organizing bets for profit could face up to five years in prison.
The enforcement predates the current restrictions. In April, the Taiwanese Taoyuan District Prosecutors Office announced an investigation based on reports that the public had used cryptocurrency to bet on local election outcomes on Polymarket.
Regulatory Challenges in the United States
Kalshi faces separate regulatory scrutiny in the United States. The Commodity Futures Trading Commission argues that prediction platform activities fall under its authority, challenging state efforts to classify sports contracts as gambling. New York's attorney general sued Kalshi in July, alleging the platform operated as an unlicensed gambling business.
