Taiwan blocks Coinbase, Kalshi over suspected election bets

TAIPEI – Taiwan has blocked the websites of Coinbase Global and Kalshi over suspected election betting, weeks before local polls that will test support for President Lai Ching-te’s government.A New Taipei court authorised the Taiwanese communications regulator and internet registry to bar domestic access to the exchange platforms, according to a ruling seen by Bloomberg News.Some Coinbase users in Taiwan reported being unable to access the site since Oct 14.The Criminal Investigation Bureau, which sought the order, said in response to questions from Bloomberg that the websites were suspected of violating the Public Officials Election and Recall Act.The law prohibits operating gambling for profit based on the outcome of an election or recall.A spokesperson for Coinbase said it is aware of access issues for some users in Taiwan and is investigating the matter.A spokesperson for Kalshi said the company does not allow trading in Taiwan.The bureau said it requested the restrictions to protect election integrity and prevent “overseas interference”, without giving further details.Taiwanese authorities have separately warned that money from mainland China could enter the island through underground financial channels and be used to influence elections.The government has stepped up scrutiny of illicit financial flows ahead of the Nov 28 vote, including underground gambling operations.Authorities have not alleged that Coinbase or Kalshi handled funds from China.China’s Taiwan Affairs Office did not immediately respond to a request for comment sent outside normal office hours.Taiwan is among the jurisdictions that criminalise election wagering.Under a 2023 amendment to the Election Act, betters can face as long as six months in prison, while gambling operators can receive up to five years.Authorities have increasingly targeted election wagering on prediction markets.Polymarket, the main rival to Kalshi, has also been blocked in Taiwan.Cryptocurrencies are often used to place bets on such platforms.Taiwanese voters will choose local officials ranging from mayors and city councillors to village chiefs.The elections will be the first island-wide electoral test for Lai since he took office in 2024 and could offer an early indication of the political landscape ahead of the 2028 presidential election. BLOOMBERG