Taiwan has taken action against Kalshi over potential election betting, just weeks ahead of local polls that will assess public support for President William Lai’s government.

A New Taipei City court has granted the Taiwanese communications regulator and Internet registry the authority to block domestic access to these platforms, according to a ruling reported by Bloomberg News.

The Criminal Investigation Bureau, which initiated the request, indicated to Bloomberg that the websites are suspected of breaching the Public Officials Election and Recall Act.

This statute explicitly prohibits any gambling operations that profit from election outcomes or recall votes. As of now, Coinbase and Kalshi have not provided any comments regarding this development.

The bureau stated that the restrictions were sought to uphold election integrity and prevent “overseas interference,” although no further specifics were provided. Additionally, Taiwanese authorities have raised alarms about potential illicit financial flows from China entering the country through underground financial channels, which could be utilized to sway elections.

In anticipation of the November 28 vote, the government has intensified its scrutiny of illegal financial activities, including underground gambling operations. It’s important to note that authorities have not accused Kalshi of handling funds from China.

The Taiwan Affairs Office in China has not responded to a comment request made outside regular office hours. In Taiwan, engaging in election wagering is a criminal offense. Following a 2023 amendment to the election act, those who place bets can face up to six months in prison, while gambling operators may incur sentences of up to five years. There has been a marked increase in enforcement against election wagering on prediction markets, with Polymarket, a major competitor to Kalshi, also facing a block in Taiwan.