Taiwan Blocks Coinbase and Kalshi Amid Election Betting Concerns
Taiwan has reportedly blocked access to cryptocurrency exchange Coinbase and prediction market Kalshi, citing suspicions of election betting. The move comes just weeks before local elections scheduled for November 28, the first since President Lai Ching-te assumed office in 2024.
Court Order Targets Online Platforms
A ruling by a New Taipei court, seen by Bloomberg News, authorized Taiwan’s communications regulator and internet registry to restrict domestic access to both platforms. Some Coinbase users in Taiwan had already reported difficulties accessing the website since October 14.
Election Integrity and Foreign Interference Cited
The Criminal Investigations Bureau, which initiated the request for the block, stated that the websites may be in violation of Taiwan’s Public Officials Election and Recall Act. This law prohibits operating gambling operations for profit based on election or recall outcomes. The bureau indicated that the restrictions are aimed at safeguarding election integrity and preventing “overseas interference,” though further details were not provided.
Company Responses
Coinbase acknowledged that some users in Taiwan were experiencing access issues and stated it was investigating the matter. Kalshi, in its response, asserted that it does not permit trading within Taiwan.
Broader Concerns Over Election Influence
While authorities have not directly accused either company of handling funds from mainland China, Taiwanese officials have previously expressed concerns about potential Chinese influence on elections through illicit financial channels. The government has intensified its scrutiny of illegal financial flows and underground gambling operations in the lead-up to the November 28 polls, where voters will select local officials including village chiefs, city councillors, and mayors.
Taiwan’s Stance on Election Wagering
Taiwan is among the jurisdictions that criminalize election wagering. An amendment to its Election Act in 2023 stipulates penalties of up to six months in prison for bettors and up to five years for gambling operators. Polymarket, a primary competitor to Kalshi, has also been previously blocked in Taiwan.
International Legal Scrutiny
Similar legal pressures have emerged internationally. South Korean police have initiated criminal cases against 26 Polymarket users and referred 18 to prosecutors for alleged wagers totaling approximately $12.7 million, utilizing public blockchain records to identify individuals despite the platform’s non-custodial nature.
Kalshi Faces U.S. Legal Challenges
Kalshi has also encountered separate disputes in the United States. In April, the platform suspended three political candidates for trading contracts linked to their own campaigns. New York filed a lawsuit against Kalshi in July, alleging it offered illegal gambling products without a state license. In August, Baltimore also filed lawsuits against Kalshi and Polymarket concerning sport-related contracts.
