Taiwan Blocks Access to Kalshi and Coinbase Over Illegal Election Betting

Authorities in Taiwan are taking decisive action ahead of the upcoming local elections scheduled for November 28. Following an order from a New Taipei court, the communications regulator has restricted access to the websites of prediction market Kalshi and cryptocurrency exchange Coinbase. Investigators from the Criminal Investigation Bureau suspect that these platforms were used to facilitate or place illegal wagers on election outcomes. Under Taiwanese law, this is considered a significant offense, as protecting the integrity of the democratic process and preventing overseas interference are top priorities.

Legal proceedings are based on the Public Officials Election and Recall Act. Taiwan amended this act in 2023 to curb the growing market for political betting. This is not the first time the island nation has targeted such providers. Previously, access to Polymarket, one of the world's largest decentralized prediction markets, was also blocked. The current measures against Kalshi and Coinbase indicate that regulators are now targeting established trading platforms and crypto service providers if there is a suspicion of election manipulation through gambling.

Numbers and facts

The legal consequences for those involved are severe. Under the 2023 amendment, individuals placing bets on election outcomes can face up to 6 months in prison. The penalties for providers are much harsher; those offering election bets face a maximum sentence of 5 years. Authorities emphasize that the current blocks are preventive measures to ensure the integrity of the elections on November 28. So far, there has been no final determination of liability, only suspected violations.

Kalshi responded promptly, denying that it permits trading in Taiwan. Coinbase, meanwhile, stated it was investigating reports of access difficulties from users without directly addressing the allegations regarding election bets. In other parts of the world, such as South Korea, 1,280 illegal betting sites were recently blocked ahead of the 2026 FIFA World Cup, highlighting a global trend toward strict network surveillance in the gambling sector.

Background

The block comes at a time when prediction markets are gaining massive popularity worldwide. Particularly in the US, there is intense debate over the legality of betting on political events. In Taiwan, however, this issue is primarily viewed through the lens of national security and the defense against disinformation. The New Taipei court followed the bureau's argument that such platforms could be used to distort public opinion through financial incentives.

"Protecting elections and preventing overseas interference were the reasons given for requesting the access restrictions." - Spokesperson for the Criminal Investigation Bureau, Taiwan

Technical implementation of the blocks is carried out via the country's internet service providers. This process is becoming common in other Asian markets. South Korea, for instance, increasingly relies on blocking IPs and domains to keep users away from unlicensed platforms like Betman, which, unlike state-controlled offers, allow live betting—a practice strictly prohibited there.

Why it matters for German players

For players in Germany, the situation in Taiwan serves as a clear warning regarding the legal gray areas of prediction markets. In Germany, the Interstate Treaty on Gambling 2021 (GlüStV 2021) strictly regulates what is permitted. Betting on political events or elections is generally not eligible for a license. Those who bet on platforms like Kalshi or Polymarket are operating on illegal ground. The Joint Gambling Authority of the States (GGL) maintains a so-called whitelist of all legal providers. Only there are player protection measures, such as the monthly deposit limit of 1,000 euros via the LUGAS system and the 1 euro per spin limit on virtual slots, guaranteed.

Violating these rules can have consequences for German users, especially regarding the payout of winnings from unlicensed providers. Since these do not hold a German license, there is no legal claim to payouts, and banks can block transactions. Furthermore, participating in illegal gambling is a criminal offense in Germany, even if the providers are based abroad.

What it means for GGL-licensed casinos

For casinos with a GGL license, these international developments confirm the validity of their business model. While unregulated platforms like Coinbase or Kalshi face sudden network blocks and criminalization, GGL-licensed German casinos offer legal certainty. They must meet strict requirements for youth protection and addiction prevention. The absence of political betting in the German portfolio protects providers from the massive regulatory interventions currently seen in Taiwan. The industry in Germany relies on transparency and the connection to the OASIS exclusion system to operate stably in the long term.