Taiwan Halts Trading on Coinbase and Kalshi Ahead of Local Elections Due to Election Gambling Reasons

Taiwan Halts Trading on Coinbase and Kalshi Ahead of Local Unified Elections

With about six weeks to go until Taiwan's local unified elections on November 28, 2026, the Taiwanese authorities took measures to block access to major cryptocurrency exchange Coinbase and the prediction market platform Kalshi in mid-October 2026.

This action appears to aim to prevent potential negative impacts on the fairness of the elections from the rising digital prediction markets. The New Taipei District Court granted communication regulatory authorities and internet registration agencies the authority to restrict domestic access to both platforms on October 15, 2026. Prior to this, users in Taiwan had observed difficulties connecting to the websites around October 14 (Wednesday). Users attempting to access the sites were automatically redirected to a notification page regarding the court's order.

The Taiwan Criminal Investigation Bureau, which requested this regulatory order, pointed out suspicions of illegal gambling on the election results of Taiwan on the trading platforms provided by both companies. Coinbase had partnered with Kalshi to develop an event prediction market, which reportedly included contracts directly related to the upcoming local elections in Taiwan.

Strict Penalties Under the Public Officials Election Recall Act

The legal basis for this crackdown is Taiwan's Public Officials Election Recall Act, which strictly prohibits profit-driven gambling activities targeting election or recall results.

The regulatory framework has been significantly strengthened by amendments in 2023, with individuals participating in gambling facing up to six months of imprisonment, and operators providing or managing gambling venues potentially facing up to five years of imprisonment.

Previously, the major prediction market Polymarket had also faced access blocking measures based on similar legal interpretations, and the Taiwanese authorities have maintained a consistent strict stance towards prediction markets.

Concerns Over Foreign Election Interference and Illicit Funds

In addition to concerns about public opinion manipulation through gambling activities, the Taiwanese authorities have identified preventing foreign interference in elections as a key objective. They are particularly wary of foreign capital flowing in through underground financial routes, which could exert undue influence on elections via prediction markets.

In this local unified election (for positions such as mayor, city council members, and village heads), which is the first since the inauguration of the current president Lai Ching-te, the government is enhancing monitoring of illicit fund flows and illegal gambling at an unprecedented level.

Challenges Faced by Global Prediction Markets

Coinbase has acknowledged some users' access issues and is investigating the causes, while Kalshi stated that it does not recognize trading offerings in Taiwan. However, the global strategies of companies attempting to develop prediction markets as financial products are increasingly hindered by gambling regulations and election security barriers in various countries.

Legal pressures surrounding prediction markets are intensifying worldwide, as seen in the criminal crackdown on Polymarket users in South Korea and various lawsuits concerning Kalshi in the United States. Taiwan's decision in this instance can be seen as a symbolic case that views the risks associated with cryptocurrencies and prediction markets not merely from a consumer protection perspective but as a national election security issue.

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