South Korean police have booked 26 Polymarket users over alleged illegal gambling involving 17.6 billion won, roughly $12.7 million, with 18 cases referred to prosecutors by Sept. 15.

The Asia Business Daily reported on Sept. 17, citing National Police Agency materials provided to lawmaker Yoon Kun-young’s office, that the Gangwon Provincial Police Agency Cyber Investigation Unit recorded a highest individual betting amount of approximately 5.7 billion won. The report was updated at 10:08 a.m. KST.

Digital Asset later reported from the same police material that investigators began preliminary inquiries in March and formally booked users from May. Police said a conventional list of domestic users was not available from the platform because Polymarket uses a non-custodial peer-to-peer structure, so investigators traced public blockchain transactions with open-source intelligence tools.

Polymarket users were traced through blockchain records

Police said public blockchain transaction data allowed investigators to identify individual users even though Polymarket does not maintain a real-name customer list in the form associated with centralized platforms. The published police material did not disclose the wallet addresses linked to the 26 suspects, preventing independent address-by-address checks of the reported wager totals.

As crypto.news reported in June, the Gangwon police inquiry had already become the first known South Korean investigation focused on domestic Polymarket users. Authorities at the time were examining whether event-contract activity could fall within the country’s gambling laws.

The newest police figures show that 18 of the 26 booked users had been referred to prosecutors by Sept. 15. The materials reviewed do not report indictments, trial dates or court judgments involving those cases.

Police say Polymarket trades can meet gambling rules

Investigators are relying on Article 246 of South Korea’s Criminal Act. The provision states that gambling can carry a fine of up to 10 million won, while habitual gambling can result in imprisonment of up to three years or a fine of up to 20 million won. The current text took effect on Sept. 13, 2026.

Police have cited a 2008 Supreme Court ruling addressing the role of chance in gambling. The court held that gambling can exist when property is wagered on an outcome the parties cannot certainly predict or freely control, even when a participant’s ability affects the result.

Applying that precedent, police told Digital Asset that Polymarket activity can satisfy Article 246 when users stake digital assets on an event and either receive settlement proceeds or lose their purchase amount depending on an uncertain result. Police said similarities to derivatives or the lack of a separate guideline do not automatically exclude gambling charges.

Users under investigation dispute that interpretation. The Asia Business Daily reported that their side describes Polymarket as a “virtual asset-based derivatives market” where probability contracts can be bought and sold before final settlement. That argument has not been accepted by a court in the cases reported so far.

Attorney Kim Tae-rim of AXIS Law told the publication that courts may examine structural features such as order-book trading and the ability to exit positions before maturity. Kim said the contracts claimed by users as prediction derivatives fall outside the existing Capital Markets Act framework, limiting the usefulness of that statute as a direct criminal defense.

South Korea blocked Polymarket before the referrals

South Korea’s Broadcasting, Media and Communications Review Committee voted on Aug. 18 to block domestic access to Polymarket after finding that the service provided what the regulator considered an illegal gambling environment to local users.

The committee focused on markets tied to politics, economics, sports, elections and weather, where users put assets at risk on events they cannot control. Regulators said Polymarket manages market rules and settlement infrastructure while receiving economic benefit from activity on the platform.

As crypto.news reported after the Aug. 18 decision, Polymarket argued during the review that its non-custodial P2P model, absence of Korean-language services and lack of Korean won payments meant it should not be treated as an operator of an illegal gambling venue.

The regulator rejected that position, saying “Technical characteristics or service structure do not constitute grounds for evading the applicability of domestic law.” It cited South Korea-focused markets and the platform’s winner-takes-all settlement structure when ordering access blocked.

The August action followed an earlier hearing process. Regulators had postponed a final decision while giving Polymarket time to present its position before the access restriction was approved the following month.

Polymarket’s U.S. venue operates under separate rules

Polymarket currently tells users that its international platform and its U.S. business operate through separate legal entities. Its website states that the international platform is not regulated by the U.S. Commodity Futures Trading Commission.

Polymarket US, by comparison, operates through QCX LLC. CFTC records list QCX LLC d/b/a Polymarket US as a designated contract market, with the designation dated July 9, 2025.

The U.S. structure does not change the legal basis stated by South Korean police. Investigators have based the domestic user cases on South Korea’s Criminal Act, while the media review committee has said a platform’s technical or service structure cannot by itself prevent the application of domestic law.

Polymarket affiliate had filed three National Futures Association applications connected with plans for margin trading. Those filings concern the regulated U.S. business and are separate from the South Korean police cases.

No court ruling identified in the reviewed South Korean sources has yet decided whether Polymarket’s order-book probability contracts fall outside Article 246 because of their claimed derivatives-like features. Eighteen case files have been sent to prosecutors, while the published police materials do not report an indictment decision or hearing date for any of the users.

Polymarket’s website continues to identify QCX LLC d/b/a Polymarket US as its CFTC-regulated designated contract market while stating that the international platform operates separately and is not regulated by the CFTC.

The UK’s financial regulator has issued final guidance spelling out when firms involved in crypto activities will need authorization under the country’s upcoming regulatory framework for digital assets. The Financial Conduct Authority (FCA) says the material is meant to help businesses determine whether their operations fall within the FCA’s regulatory perimeter and, if so, what permissions they should prepare for.

In a bulletin published through the FCA’s guidance channel, the regulator outlines several categories of activity that may trigger authorization requirements, including issuing qualifying stablecoins, operating cryptoasset trading platforms, and dealing and arranging crypto transactions. The perimeter also extends to firms that safeguard cryptoassets and arrange crypto staking services, according to the FCA.

Key takeaways

• The FCA’s final guidance is designed to clarify which crypto activities are likely to require FCA authorization under the new UK regime.
• Activities listed include qualifying stablecoin issuance, operating trading platforms, transaction dealing/arranging, safeguarding cryptoassets, and arranging crypto staking.
• Existing registrations and permissions will not automatically “roll over” into the new regime, so firms may need FCA authorization or permission variations.
• FCA applications for transitional arrangements will open on Sept. 30, with a Feb. 28, 2027 deadline ahead of the Oct. 25, 2027 effective date.
• The FCA plans further consultation on perimeter guidance later this year, meaning businesses should expect refinements to come.

What the FCA guidance covers

The FCA’s bulletin provides an operational checklist for firms trying to understand how the incoming regime applies to their specific business models. The guidance is intended to reduce uncertainty for compliance teams by mapping common crypto-related activities to the types of permissions they may require under UK authorization rules.

Among the activities the FCA highlights are:

• Issuing qualifying stablecoins, where the token’s characteristics and the issuer’s role can bring it within regulatory expectations.
• Operating crypto trading platforms, which may involve activities that regulators typically treat as part of regulated market or intermediary functions.
• Dealing and arranging transactions involving cryptoassets, which can cover more than just executing trades and may include intermediation or brokerage-like services.
• Safeguarding cryptoassets, pointing to custody and related responsibilities.
• Arranging crypto staking, which may capture services that facilitate or structure participation in staking activities.

For firms, the practical challenge is that UK rules under this new framework focus on authorization and permission categories rather than treating “registration” as a permanent status. The FCA’s guidance explicitly warns that current permissions will not automatically convert when the new regime takes effect. As a result, many companies will likely need to reassess whether they require full authorization, a different permission, or a variation on existing approvals.

Timetable for transitional arrangements

The FCA said it will open applications for transitional arrangements on Sept. 30. Firms seeking transitional relief will have until Feb. 28, 2027 to apply. These dates matter because the FCA expects the broader regulatory regime to begin on Oct. 25, 2027.

The regulator also indicated it intends to consult later this year on potential further changes to its perimeter guidance. That means firms should treat the current publication as a baseline for planning rather than a guarantee that the perimeter rules will remain static through the transition period.

David Geale, the FCA’s executive director of consumers, payments and competition, framed the guidance as a first step toward compliance readiness, saying that getting ready for regulation depends on understanding how the regime applies to each business and that the FCA is providing clarity firms have asked for.

How the UK regime is evolving

The guidance arrives as the UK moves from legislative approval toward implementation details for cryptoasset regulation. Parliament approved regulations that bring cryptoassets into the FCA’s regulatory remit in February, and the FCA later finalized a package of rules and guidance in June.

In parallel, lawmakers have continued to press for broader strategy and coordination around digital assets. Earlier coverage of the House of Lords vote noted that peers supported an amendment to the Financial Services and Markets Bill requiring the Treasury to develop a digital asset strategy covering cryptoassets, stablecoins, tokenized securities, and digital financial infrastructure within 12 months after the bill becomes law.

The FCA’s approach extends beyond perimeter mapping. The regulator has also been working on aspects of how tokenized products should fit into existing financial rulebooks. According to the input, the FCA sought feedback on whether some tokenized gold products should receive an exemption from UK fund rules, while the FCA and the Bank of England said they plan to publish a roadmap for tokenization in wholesale financial markets later this year.

Taken together, these developments suggest the UK is building a regulatory framework that doesn’t merely label crypto as “in or out,” but also aims to address how tokenized assets interact with established market and investment infrastructure.

Why the perimeter guidance matters to firms

For UK crypto businesses, the immediate impact of the FCA’s guidance is operational: companies need to translate perimeter definitions into product and compliance decisions. Determining whether a service is treated as issuing stablecoins, operating a trading platform, arranging staking, or safeguarding cryptoassets will shape everything from licensing plans to customer protections and internal controls.

Just as importantly, the FCA’s message about non-conversion of existing permissions raises the stakes for timelines. Even firms that already hold some form of authorization or registration may still need to submit applications or request permission variations to match the new authorization categories.

As the application window for transitional arrangements approaches, businesses will likely focus on gaps—areas where their current permission set doesn’t align cleanly with the FCA’s perimeter categories, or where their structure might be interpreted differently once the new regime is active. With the FCA also planning additional consultation later this year, firms should be prepared for incremental adjustments to the perimeter framework.

Firms and market participants should watch next for the FCA’s upcoming consultation on perimeter guidance changes, as well as how the transitional arrangement application process unfolds ahead of Oct. 25, 2027. The closer the timetable gets, the more compliance teams will need to validate their activity classification and permission strategy against the FCA’s evolving interpretation.

Bitcoin traded close to its levels prior to the US Federal Reserve’s announcement on Wednesday, even after the Fed lifted its benchmark interest rate for the first time since 2023. The market largely appeared to have priced in the move: at the time of writing, BTC was around $76,663, up about 1.35% over 24 hours.

The Federal Open Market Committee voted unanimously to raise rates by 25 basis points to a target range of 3.75% to 4%. While rate hikes typically weigh on stocks and other risk assets, crypto analysts told Cointelegraph that Bitcoin’s immediate reaction was muted and near pre-announcement price levels.

Key takeaways

• Bitcoin held around pre-Fed levels near $76,000 after a unanimous 25bp hike to 3.75%–4%.
• Analysts said the decision looked “largely anticipated,” limiting the immediate downside in BTC.
• Derivatives activity showed net selling in perpetual futures, partially offset by net spot buying.
• FOMC projections pointed to at least one more potential hike before year-end for many officials.

Bitcoin shrugs off a widely expected Fed hike

According to Talos research analyst Cooper Duschang, the lack of dramatic price movement suggested that crypto markets had already incorporated the Fed’s decision. “The initial reaction suggests the Fed’s decision was largely anticipated by crypto markets,” he said in comments shared with Cointelegraph. He added that Bitcoin remained relatively resilient, “holding broadly around pre-announcement levels even as equities moved lower.”

At the same time, US equities slipped during Wednesday’s trading session, following the Fed announcement. Crypto traders are watching for any shift from this “priced-in” backdrop—especially if future Fed communication turns more restrictive than expected.

What the Fed signaled: inflation still too high, economy strengthening

During the post-decision press conference, Fed Chair Kevin Warsh said inflation remains too high, while the US economy appears to be strengthening. The Fed’s updated economic projections indicated that a majority of officials foresee at least one more rate hike before the end of the year.

The same theme appears in the FOMC participation expectations cited in the article: 16 of 18 FOMC participants were reported as expecting at least one more rate increase this year, based on the Fed’s FOMC projections table available on the Federal Reserve’s website: US Federal Reserve.

Block Scholes’ Andrew Melville characterized the overall policy direction by arguing that an additional increase would be a “more hawkish surprise than today’s 25bp hike,” underscoring the market’s sensitivity to changes from expectation rather than the first move itself.

Spot and derivatives tell a more mixed story than the price chart

While Bitcoin’s headline price response looked subdued, Duschang said activity in spot and derivatives suggested investors were repositioning rather than simply stepping aside. He pointed to a short-term shift in perpetual futures positioning toward net selling over the hour following the announcement—about $82 million net selling in Bitcoin and $68 million in Ether.

However, that selling pressure did not translate cleanly into broader downside because net spot flows appeared to be absorbing some of the impact. Duschang reported roughly $15.5 million of net spot buying in Bitcoin, which he said could be helping counterbalance the derivatives-led pressure.

Exchange flow data reinforced the idea of active adjustment. Duschang noted that around 2,170 Bitcoin moved onto exchanges after the rate decision, followed by withdrawals of about 1,260 Bitcoin. Interpreting these movements, he argued that rather than one uniform “risk-off” reaction, investors were “actively repositioning as they digest the Fed’s message.”

“Higher for longer” raises the stakes for later

Even if Wednesday’s hike did not move BTC much, analysts warned that the bigger question is what happens next—especially as attention shifts from a move widely expected by markets to the possibility of further tightening.

Martin Lee, market insights lead at DWF Labs, suggested that a renewed hawkish posture associated with “higher for longer” rates would likely force risk assets to “repricing this new reality.” In practice, that means future price action may depend less on the existence of rate hikes and more on how the Fed frames the path ahead and how traders judge probabilities for additional moves.

Duschang framed the near-term watchpoints similarly: the key issue is whether Bitcoin’s resilience and spot demand remain intact as investors reassess tightening expectations beyond the immediate decision.

For now, traders appear to be separating the first hike—already priced by many—from the next steps implied by Fed projections and subsequent communication. The next catalyst to monitor is whether spot demand continues to offset derivatives selling if markets start to price in an additional hike with higher confidence.

Bitcoin held near its pre-Fed announcement levels of around $76,000 on Wednesday despite the US Federal Reserve raising its benchmark interest rate for the first time since 2023 to address persistently high inflation. 

The Fed’s Federal Open Market Committee on Wednesday voted unanimously to raise rates by 25 basis points to a target range of 3.75% to 4%, a move that typically puts pressure on stocks and other risk assets. However, Bitcoin showed little immediate reaction to the announcement and was trading at $76,663 at the time of writing, up 1.35% in 24 hours.

“The initial reaction suggests the Fed’s decision was largely anticipated by crypto markets. Bitcoin has remained relatively resilient, holding broadly around pre-announcement levels even as equities moved lower,” said Cooper Duschang, research analyst at Talos in comments shared with Cointelegraph. 

Bitcoin’s price resilience came despite US stocks slipping on Wednesday. Crypto analysts said this resilience could be tested again if the Fed raises rates further this year. 

During the FOMC press conference, Fed Chair Kevin Warsh said that inflation remains too high while the US economy looks to be strengthening. The Fed’s updated economic projections show a majority of officials see at least one more rate hike before the end of the year.

Andrew Melville, head of research at Block Scholes, said another increase in rates would be a “more hawkish surprise than today’s 25bp hike.”

However, Duschang said that while Bitcoin’s price action was muted, there was movement in the spot and derivatives markets. 

“Perpetual futures have shifted towards net selling, led by approximately $82 million in Bitcoin and $68 million in Ether over the past hour,” he said. “In contrast, Bitcoin recorded around $15.5 million of net spot buying, suggesting spot demand is absorbing some of the selling pressure coming through derivatives.” 

Related: Bitcoin awaits Fed rate decision below $76K as analysis discounts ‘dovish surprise’ odds

Duschang also noted significant Bitcoin exchange flows, with around 2,170 Bitcoin moving onto exchanges following the rate increase, followed by a withdrawal of 1,260 Bitcoin. 

“Rather than a uniform risk-off response, investors appear to be actively repositioning as they digest the Fed’s message,” he said. “The key question now is whether Bitcoin’s resilience and spot demand hold as attention shifts from today’s widely anticipated hike to the prospect of further tightening.” 

Martin Lee, market insights lead at DWF Labs, said the renewed “hawkish stance” of “higher for longer” rates would lead to risk-on assets “repricing this new reality.” 

Magazine: HYPE price could suffer as Binance takes its revenue: Alice Liu

Ethereum price rebounded toward $2,420 after a sharp sell-off, but weak capital flows and resistance near $2,465 leave ETH exposed to another correction.

Ethereum price action today

Ethereum (ETH) price was trading near $2,421 on Sep. 16 after recovering from an intraday low of $2,382.70, according to Binance data shown on TradingView. ETH opened the current daily candle at $2,398.26 and rose about 0.95%, partially reversing the previous decline.

The rebound followed a broader sell-off that briefly pulled ETH below the $2,400 psychological level. Market pressure intensified after the Digital Asset Market CLARITY Act failed to advance in the U.S. Senate.

The bill’s cloture motion reportedly failed in a 49-50 vote, short of the 60 votes needed to proceed. Its defeat weakened expectations that Congress would soon establish clearer divisions between the Securities and Exchange Commission and the Commodity Futures Trading Commission.

Ethereum was particularly vulnerable because the pullback followed several failed attempts to remain above the $2,500 area. The token recently traded as high as roughly $2,660 before sellers pushed it back toward its current range.

Derivatives added to the pressure. Ethereum accounted for about $250 million in liquidations during the broader market decline, as the loss of $2,450 forced leveraged long positions to close.

Technical indicators point to fading momentum

Ethereum’s daily chart shows that the recovery remains below the Bollinger Bands’ middle line at $2,464.49. That level now forms the first technical barrier above the market.

The upper Bollinger Band sits at $2,544.69, placing the broader resistance zone between approximately $2,465 and $2,545. A daily close above that range would strengthen the case that the correction has ended.

ETH is also holding just above the lower Bollinger Band at $2,384.30. Buyers defended that level during Tuesday’s decline, with the session low reaching $2,382.70 before price recovered.

The daily relative strength index stands at 52.09. Although the reading remains above the neutral 50 mark, it has fallen below its moving average of 61.02 after retreating from overbought territory. The decline shows that bullish momentum has faded since ETH’s late-August rally.

Conditions look weaker on the 4-hour chart. Ethereum trades below Supertrend resistance at $2,526.61, while the indicator’s former support near $2,441.90 has been lost. ETH would need to reclaim both levels to weaken the short-term bearish setup.

Chaikin Money Flow stands at minus 0.07 on the same timeframe. The negative reading indicates that selling pressure is slightly stronger than buying pressure, limiting the conviction behind the latest rebound.

Ethereum must defend the $2,380 support zone

The immediate support area lies between $2,380 and $2,400. Both the daily lower Bollinger Band and Tuesday’s intraday low fall within this range, making it the first level buyers need to defend.

A sustained breakdown below $2,380 could expose the August breakout region near $2,300. The weekly chart shared by analyst Ted Pillows identifies another support zone around $2,230, with a lower level near $2,056 if selling accelerates.

The bullish path begins with a move back above the daily Bollinger midpoint at $2,464. ETH would then need to clear the psychological $2,500 level and 4-hour Supertrend resistance at $2,526.

Further gains could place the recent $2,550-$2,660 rejection zone back in focus. Acceptance above that supply area would invalidate much of the current bearish structure and open a possible move toward $2,800.

Ethereum’s one-week liquidation heatmap shows ETH trading near $2,420 after sweeping several leveraged positions during its drop from above $2,500. The closest liquidity is concentrated around $2,420-$2,450, while additional clusters appear near $2,500 and $2,625-$2,660. Below the market, liquidity is visible around $2,350-$2,400, leaving ETH vulnerable to further volatility if either side is breached.

Analysts warn of a deeper Ethereum correction

Crypto analyst Ted Pillows said ETH was testing its 50-week exponential moving average. He warned that a weekly close below the indicator could produce an 8% to 10% correction.