Taiwan blocks Coinbase and Kalshi before November 28 vote, report says

Key takeaways

  • Taiwan reportedly blocked domestic access to Coinbase and Kalshi ahead of local elections set for November 28, citing suspicion of election betting.
  • A report published October 15, citing a ruling seen by Bloomberg News, said a New Taipei court authorized Taiwan's communications regulator and internet registry to block Coinbase and Kalshi.
  • Coinbase said some users could not access its website and it was investigating; Kalshi said it does not allow trading in Taiwan.
  • The case shows how election rules can affect platform access.

What happened
Access problems began on October 14 for some Coinbase users in Taiwan. A New Taipei court authorized Taiwan's communications regulator and internet registry to block domestic access to Coinbase and Kalshi. The Criminal Investigations Bureau requested the order and suspected the websites may violate Taiwan's Public Officials Election and Recall Act. That law prohibits operating gambling for profit based on an election or recall outcome.

The bureau said the restrictions were intended to protect election integrity and prevent "overseas interference," but it did not provide further details. The timing is ahead of local elections set for November 28, described as the first time since President Lai Ching-te took office in 2024. Voters are expected to choose local officials, including village chiefs, city councillors, and mayors. The government has stepped up scrutiny of illicit financial flows and underground gambling ahead of the poll.

Market context
Coinbase said it was aware that some users in Taiwan could not access its website and was investigating. Kalshi responded that it does not allow trading in Taiwan. Authorities have not accused either company of handling money from mainland China. Still, the report notes that Taiwanese officials have separately warned that funds from China could enter the island through underground financial channels and be used to influence elections.

The broader context is that election-related prediction markets are facing legal pressure in multiple jurisdictions. Taiwan is among the jurisdictions that criminalize election wagering. Under a 2023 amendment to its Election Act, bettors can face up to six months in prison, while gambling operators can receive sentences of as long as five years. Polymarket, Kalshi's main rival, has also been blocked in Taiwan.

Outside Taiwan, CryptoPotato reported that South Korean police opened criminal cases against 26 Polymarket users and referred 18 to prosecutors over about $12.7 million in wagers. Investigators used public blockchain records to identify users despite Polymarket's non-custodial structure. This shows on-chain data can support enforcement despite a non-custodial design.

Kalshi has faced separate disputes in the United States. In April, it suspended three political candidates for trading contracts tied to their own campaigns. New York sued the platform in July, alleging it offered illegal gambling products without a state license. Baltimore filed lawsuits against Kalshi and Polymarket in August over sport-related contracts.

Why it matters
For users, the immediate issue is access: court-ordered blocks can change availability quickly and without public details. Coinbase's statement says it was investigating, but no timeline or remedy was provided. Kalshi's position that it does not allow trading in Taiwan does not resolve the reported block, because the restriction appears aimed at access rather than only at users' trading activity.

For platforms, the episode illustrates how election laws can intersect with product design. Prediction markets that allow contracts on election outcomes may be treated as gambling operators in jurisdictions with strict election wagering bans. The source does not say Taiwan made a final determination; it describes a suspected violation and an access restriction.

The case also shows jurisdictional fragmentation. A service may be accessible in one market, restricted in another, and subject to enforcement elsewhere. The South Korea example adds that public blockchain records can support investigations even when a platform describes itself as non-custodial.

What to watch
Readers should watch whether Taiwan's authorities provide more detail about the scope of the block and whether the "overseas interference" reference expands into formal allegations. The report says the bureau did not provide further details, and authorities have not accused either company of handling money from mainland China.

It is also worth watching how Coinbase handles user access during an investigation. Its statement confirms awareness of access problems, but does not confirm the duration or technical scope of the block. Kalshi's response that it does not allow trading in Taiwan may reduce its exposure.

The source shows a pattern of legal pressure on prediction markets. Polymarket's block in Taiwan, South Korean cases involving 26 users and 18 referrals, and United States actions in New York and Baltimore indicate that election and sports contracts are facing enforcement cases. The source does not state whether the block will be lifted after the November 28 vote.