India has blocked access to Polymarket under its information-technology laws, and reports indicate that Kalshi, a U.S.-regulated prediction market, could face a similar ban as the government widens its crackdown on offshore event-trading platforms.
Why India Blocked Polymarket
The Ministry of Electronics and Information Technology issued an advisory stating that Polymarket and similar prediction-market sites have been blocked in India under Section 69A of the IT Act. The advisory warned VPN providers and intermediaries not to facilitate access to what MeitY called “illegal and blocked prediction market and online betting platforms.”
MeitY cited the PROG Act 2025, which expressly prohibits online real-money gaming activities in all forms. The ministry said facilitating access or payments to prediction-market activity would violate the law.
A key focus of the advisory was the crypto payment rail. MeitY noted that Indian users were converting rupees into virtual digital assets such as USD Coin and other stablecoins to participate on blocked platforms. That language signals India is targeting not just the gaming-law angle but the stablecoin funding channels that let users circumvent access restrictions.
POL, the native token of the Polygon ecosystem that underpins much of Polymarket’s infrastructure, traded near $0.091 with a market cap of roughly $972 million at the time of reporting.
Why Kalshi Could Face Similar Restrictions
Kalshi has not been formally blocked. The platform told Moneycontrol on May 22 that it had not received any shutdown or takedown order from the Indian government and was still in communication with authorities.
However, reports suggest MeitY may extend its enforcement to Kalshi. According to earlier Moneycontrol reporting, the ministry was already examining potential action against both Kalshi and Polymarket as early as April 2026, with IT Secretary S. Krishnan describing VPN enforcement as a “whack-a-mole” problem.
The regulatory overlap is significant. Both platforms allow users to trade on real-world event outcomes, and both fall under the PROG Act’s broad prohibition on real-money gaming. If India’s enforcement rationale applies to Polymarket, it applies equally to Kalshi, which has previously faced scrutiny from U.S. lawmakers over insider-trading concerns.
Despite MeitY’s warnings, a Bloomberg report syndicated through Moneycontrol said both Polymarket and Kalshi continued allowing Indian customers to sign up and trade after the ministry’s advisory. A May 7 Indian Premier League match between Lucknow Super Giants and Royal Challengers Bengaluru attracted $27.7 million in trading volume across the two platforms.
What the Move Means for Prediction Markets and Crypto Users
For users in India, the immediate effect is restricted access to Polymarket and, potentially, Kalshi. MeitY’s advisory puts VPN providers and payment intermediaries on notice, raising the compliance risk for anyone facilitating workarounds.
The stablecoin dimension is what sets this crackdown apart. By explicitly calling out USDC-to-rupee conversions, India is drawing a line between prediction-market enforcement and crypto platform oversight more broadly. That could have downstream effects on exchanges and on-ramp services operating in India.
The broader crypto market reflected a cautious mood. The Fear and Greed Index sat at 28, classified as “Fear,” while the global crypto market cap held near $2.6 trillion.
Market observers should watch for a formal MeitY blocking order naming Kalshi specifically. No such document has surfaced publicly, and Kalshi’s statement that it remains in dialogue with Indian authorities leaves room for a negotiated outcome. Whether India can enforce these bans effectively, given Krishnan’s own admission about the difficulty of VPN enforcement, remains an open question with no clear timeline for resolution.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
