Argentina's Health Ministry (@MinSalud_Ar) has submitted a gambling-addiction prevention bill to Congress that marks a significant shift in how the country approaches crypto regulation. For t
Argentina's Health Ministry (@MinSalud_Ar) has submitted a gambling-addiction prevention bill to Congress that marks a significant shift in how the country approaches crypto regulation. For the first time, the legislation explicitly names virtual asset service providers (VASPs) alongside banks, fintechs, and wallet providers, barring them from facilitating transactions for gambling platforms operating without an Argentine license.
The bill proposes amendments to the Penal Code, carrying prison sentences of two to four years for individuals or companies that provide financial, technical, or digital-asset services to unlicensed gambling operators.The measure would extend compliance obligations to crypto intermediaries such as exchanges and fiat on-ramps, requiring them to identify and block transfers tied to gambling-related wallets or merchant flows.Exchanges and crypto asset providers would also face stricter due diligence, transaction monitoring, and KYC requirements.
Enforcement would be broad. The bill expands the scope beyond online betting to any platform facilitating unauthorized betting activity, including a ban on advertising across digital media. Coordination is planned across the central bank, securities regulator, telecoms authority, and the national domain registry to block both technical access and fund flows.
The bill does not arrive in a vacuum. Critics within the industry warn the approach could backfire. The Argentine Fintech Chamber cautioned in March that overregulation risks pushing users toward unregulated offshore exchanges, the opposite of the bill's stated intent.
The legislation also follows Argentina's sweeping ban on Polymarket, the crypto-based prediction market platform. A Buenos Aires court ordered a nationwide block of Polymarket after determining that the site operated as an unauthorized betting system, with the measure promoted by the Specialized Prosecutor's Office for Gambling. Argentina became the first Latin American country to achieve this type of block, which the public prosecutor's office said marks a regional milestone in online gambling regulation.The platform allowed transactions via cryptocurrencies and credit cards, did not require identity or age verification, and enabled account creation within minutes, meaning anyone, including minors, could access it and begin betting without any form of control.
Restrictions on prediction markets have been increasingly emerging in multiple jurisdictions globally, with major platforms such as Polymarket facing scrutiny over concerns that event-based trading may constitute unlicensed gambling activity. Argentina's new bill signals that Buenos Aires intends to close the payment rails that allow such platforms to operate, not just block web access.
Sources:Cointelegraph: Argentina Bill Targets Crypto Payments for Online BettingBuenos Aires Times: Senate Receives New Anti-Gambling Addiction BillYogonet: Argentina Court Blocks Access to Polymarket
