Taiwan blocks Coinbase, Kalshi over election betting fears

Taiwan has blocked domestic access to cryptocurrency exchange Coinbase and prediction market platform Kalshi over suspected illegal election betting, following a court order ahead of the November 28, 2026, local elections.

Taiwan’s Criminal Investigation Bureau requested the restrictions after identifying suspected violations of the Public Officials Election and Recall Act, according to a New Taipei court ruling reported on October 16. The order authorized the island’s communications regulator and internet registry to prevent users from accessing the two websites.

Some Coinbase users began reporting problems reaching the exchange’s website on October 14. The company acknowledged the disruption and said it was investigating, while Kalshi maintained that its trading services were not available to customers in Taiwan.

The restrictions come ahead of local elections in which voters will choose mayors, city councilors, and village chiefs. Authorities have been examining online betting activity as part of their preparations for the November vote.

Taiwan blocks Coinbase and Kalshi over suspected election bets

The court order followed a request from the Criminal Investigation Bureau, which suspected the two platforms of violating Taiwan’s election laws. Investigators raised concerns that websites offering access to election-related betting could breach restrictions on gambling involving political outcomes.

According to the bureau, authorities sought the website restrictions to protect election integrity and prevent “overseas interference.” The agency did not publicly explain what specific activity on Coinbase or Kalshi prompted the request, and the available reporting did not identify particular transactions linked to illegal election bets.

The court authorized Taiwan’s communications regulator and internet registry to carry out the restrictions. Reports of interrupted access began on Wednesday, October 14, although the precise timing of the court’s authorization was not independently established in the available records.

Coinbase confirmed that some users in Taiwan were experiencing difficulties accessing its website. A company spokesperson said the exchange was aware of the problem and was examining the cause, without giving a timetable for restoring access.

Kalshi responded separately, stating that the company does not permit trading in Taiwan. Its statement did not acknowledge facilitating any prohibited wagers, and authorities have not announced criminal charges against either company in connection with the reported restrictions.

Coinbase entered the prediction market business through a partnership with Kalshi, bringing event-based trading into its cryptocurrency application. In January 2026, the company expanded Kalshi-powered prediction markets across all 50 U.S. states, allowing eligible users to trade contracts linked to real-world events.

The U.S. rollout included contracts on economic data, sports, and other outcomes. However, Coinbase’s availability of such services in the United States does not establish that identical products were offered to Taiwanese customers.

Taiwan election laws allow prison terms for illegal betting

Taiwan strengthened its election gambling restrictions in June 2023 by amending laws governing presidential and local elections. The changes introduced specific criminal penalties for wagering on election and recall results, including bets placed through online platforms.

The Ministry of Justice confirmed that the amendments raised penalties for operating election gambling activities. Individuals found guilty of placing prohibited election bets may face imprisonment of up to six months, while people operating gambling businesses for profit can receive sentences of up to five years.

The rules cover both traditional gambling operations and bets conducted through telecommunications equipment, electronic communications, or the internet. Authorities can pursue cases involving individuals who organize or provide venues for betting on election outcomes for profit.

Taiwan’s Public Officials Election and Recall Act places election betting offenses under Article 103-1. The provision allows fines of up to NT$100,000 for illegal wagers and up to NT$500,000 for operating prohibited gambling activities, alongside applicable prison sentences.

Election betting has been a subject of previous enforcement operations. In January 2024, the Ministry of Justice reported that investigators had received 2,607 election-related criminal cases during the preceding election period, including 1,222 suspected gambling cases involving 1,103 individuals.

The ministry identified election gambling as the largest category among the reported election offenses at that time. Officials subsequently strengthened investigations involving underground betting operations, including online networks used to collect wagers and distribute payments.

Authorities raise concerns over overseas election funding

The latest website restrictions follow warnings from Taiwanese authorities that illegal financial channels could be used to influence political activity ahead of the November elections. Investigators have focused on underground gambling operations and the possible movement of funds into the island through unauthorized networks.

The Criminal Investigation Bureau cited concerns about foreign interference when explaining its decision to seek the website blocks. Officials have separately warned that money originating from mainland China could reach Taiwan through underground financial channels and be used for political influence.

Authorities have not accused Coinbase or Kalshi of handling funds from mainland China. The bureau has not publicly presented evidence connecting either platform to Chinese financing, and no such connection has been established in the available reporting.

Taiwan’s restrictions extend to other prediction market services. Polymarket, another platform allowing users to trade contracts linked to future outcomes, has previously been blocked in the jurisdiction over election gambling concerns.

Although prediction market contracts can resemble financial products in their trading structure, Taiwan’s election gambling laws specifically prohibit wagering on political outcomes under certain conditions. The legal restrictions apply to online betting activities regardless of whether participants use cryptocurrency or other payment methods.

Taiwan’s approach differs from the regulatory treatment of some event contracts in the United States. There, Kalshi operates under Commodity Futures Trading Commission oversight, although its products have faced challenges from state gambling regulators.

In July, a New York federal judge rejected Kalshi’s request to block state restrictions on sports prediction markets. The ruling allowed the state’s legal challenge to proceed while Kalshi continued arguing that federal commodities law governed its contracts.

A separate Nevada dispute reached the federal appeals court in August. The court rejected Kalshi’s attempt to prevent Nevada gambling regulators from enforcing state law, finding that the company had not established that federal commodities legislation displaced the state’s authority over sports betting contracts.

The U.S. lawsuits concern sports event contracts and do not establish the legality of election wagering in Taiwan. Kalshi has maintained in those proceedings that its federally regulated contracts fall under the CFTC’s authority.

November 28 elections put local officials before voters

Taiwan will hold local elections on November 28, with voters selecting officials responsible for municipal and community administration. The positions include city mayors, local council members, and village chiefs across the island.

The vote will be the first island-wide electoral contest since President Lai Ching-te took office in May 2024. His Democratic Progressive Party will compete against opposition parties for local government positions, with the results determining control of municipalities and councils.

The elections take place approximately two years before Taiwan’s scheduled 2028 presidential election. Campaign activity has intensified as political parties prepare candidates and voters consider local issues, including public services, housing, infrastructure, and municipal administration.

As preparations continue, law enforcement agencies are examining potential election offenses involving gambling, illegal financing, and suspected outside interference. Authorities have not announced whether the restrictions on Coinbase and Kalshi will remain in place beyond the November 28 vote.

Coinbase has not provided a confirmed date for restoring normal website access in Taiwan, while Kalshi’s stated position remains that customers in the jurisdiction cannot trade on its platform.