Taiwan Blocks Coinbase and Kalshi as Election Betting Crackdown Intensifies
Taiwan has blocked access to cryptocurrency exchange Coinbase and prediction market platform Kalshi over suspected illegal election betting. The restrictions come ahead of the island’s November 28, 2026, local elections.
A New Taipei court authorized the restrictions following a request from Taiwan’s Criminal Investigation Bureau. Bloomberg reported that authorities suspect the platforms of violating election laws that prohibit gambling on political outcomes.
Taiwan Court Orders Coinbase and Kalshi Restrictions
Taiwan’s communications regulator and internet registry received authorization to restrict domestic access to both websites. Some Coinbase users reported difficulties accessing the exchange beginning October 14.
Coinbase acknowledged that some Taiwanese users were experiencing website access problems and said it was investigating the issue. Meanwhile, Kalshi stated that Taiwan was already a restricted jurisdiction for its trading services.
The Criminal Investigation Bureau said the restrictions aim to protect election integrity and prevent potential foreign interference. However, authorities have not publicly established that either company engaged in illegal election betting.
Taiwan Tightens Cryptocurrency Election Betting Rules
Taiwan prohibits gambling on election results under its Public Officials Election and Recall Act. Amendments introduced in 2023 strengthened penalties for individuals and businesses involved in election wagering.
Individuals who place illegal election bets can face up to six months in prison. Operators running election gambling activities for profit could receive prison sentences of up to five years.
Authorities have also restricted access to Polymarket, another major prediction market platform. Earlier investigations identified cryptocurrency-based wagers linked to Taiwan’s upcoming local elections.
The government has increased scrutiny of underground financial networks and suspicious cryptocurrency transactions ahead of the vote. Officials have raised concerns about potential foreign funding, although they have not accused Coinbase or Kalshi of handling money from mainland China.
Prediction Markets Face Growing Regulatory Pressure
The restrictions highlight regulatory challenges facing cryptocurrency exchanges and prediction market operators across different jurisdictions. Platforms offering contracts linked to political events must navigate varying interpretations of financial trading and gambling laws.
Taiwan’s November elections will determine local leadership positions, including mayors, city councilors, and village chiefs. The vote will also mark the first island-wide electoral test since President Lai Ching-te took office in 2024.
For cryptocurrency businesses, the case demonstrates how local election regulations can affect access to international trading platforms. It also underscores the growing attention regulators are giving to blockchain-based prediction markets and cross-border financial activity.
