New Argentine legislation aims to halt cryptocurrency transactions with unlicensed gambling operators
A new online gambling bill introduced in Argentina seeks to prevent financial institutions, payment service providers, and cryptocurrency platforms from processing transactions for unlicensed betting operators.
The Argentine government is taking steps to prevent financial institutions, payment service providers, and cryptocurrency platforms from facilitating transactions for unlicensed online gambling operators, forming part of a comprehensive effort to combat digital betting activities.
Congress received a Bill for the Prevention of Gambling and Regulation of Online Gambling from the government, as stated in an official announcement released Tuesday by the Ministry of Health.
The proposed legislation aims to combat gambling addiction through stricter regulations on payment processing, promotional activities, and platform accessibility.
The proposal creates a direct connection between gambling oversight and financial systems, encompassing both payment networks and cryptocurrency infrastructure, which could fundamentally alter how unlicensed betting operators gain access to payment processing and crypto infrastructure within Argentina.
Direct limitations imposed on cryptocurrency and payment services
A key component of the proposed legislation focuses on payment infrastructure, encompassing both conventional banking channels and cryptocurrency asset service providers.
The ministry's official statement indicates that the bill would grant regulatory authorities the power to prevent transactions associated with unlicensed gambling operators.
It [the bill] establishes that financial entities, providers of payment services or virtual assets (cryptocurrencies) are prohibited from offering their services to unauthorized gambling operators.
The proposed measure would likely impose compliance requirements on cryptocurrency intermediaries including trading platforms and fiat currency gateways, mandating them to detect and prevent transfers connected to gambling-associated wallets or payment flows. This development could impact how individuals finance international betting services that depend on cryptocurrency deposits as their main transaction method.
Following the discovery that MoonPay was featured in onboarding documentation examined by Cointelegraph from a domestic crypto gambling platform, Cointelegraph reached out to the company for comment, though no response had been received at the time of publication.
Polymarket faced a nationwide ban ordered by a local court previously
The legislation would additionally broaden enforcement measures beyond internet betting to encompass any service enabling unlicensed wagering activity, including prohibitions on promotional content across online media channels. Services that promote operators without proper authorization could be subject to sanctions or required to confirm the licensing credentials of the offerings they promote.
This fresh legislative proposal contributes to Argentina's wider campaign to suppress illegal internet betting and strengthen supervision of online gambling operations.
Domestic regulatory bodies have previously taken measures against prediction market platforms, with a court ordering Argentina's national communications and media regulator in March to restrict access to Polymarket. The legal action originated from the Buenos Aires City Lottery, the government-controlled organization tasked with overseeing gambling regulation within the city.
Regulatory constraints on prediction market platforms have been surfacing with increasing frequency across various jurisdictions worldwide, with prominent services like Polymarket and Kalshi encountering regulatory challenges amid concerns that event-driven trading activities might represent unauthorized gambling operations.