Argentina Seeks to Block Crypto Transactions Linked to Illegal Betting
BUENOS AIRES – Argentina’s government has introduced legislation that would prohibit banks, payment providers and cryptocurrency firms from servicing unauthorised online gambling operators.
LISTEN TO THIS ARTICLE:The proposed Bill for the Prevention of Gambling and Regulation of Online Gambling was submitted to Congress as part of a broader effort to combat illegal betting and address concerns about gambling addiction, particularly among young people.
According to the Ministry of Health, the legislation would strengthen controls on payments, advertising and access to online gambling platforms while expanding enforcement powers against unlicensed operators.
Crypto Providers Would Face New Compliance Requirements
One of the most significant elements of the bill focuses on financial infrastructure, including cryptocurrency services. Under the proposal, financial institutions, payment service providers and virtual asset companies would be prohibited from offering services to unauthorised gambling operators.
Authorities would also gain powers to block transactions linked to illegal betting platforms. If approved, the measures could require crypto exchanges and fiat on-ramp providers to identify and restrict transfers associated with gambling-related wallets or merchant accounts.
The changes could affect offshore gambling operators that rely on cryptocurrency deposits from Argentine players.
Government Cites Concerns over Youth Gambling
The legislation comes amid growing concern about online gambling participation among younger Argentines. Government data cited in the proposal indicates that more than one in four high school students has gambled within the past year, primarily through online platforms.
Officials said the bill would formally recognise gambling addiction as a public health issue and strengthen prevention and treatment initiatives led by the Ministry of Health and Sedronar, Argentina’s national agency for addiction prevention.
The proposal would also introduce tougher criminal penalties. Illegal gambling operators could face prison sentences of up to six years, while advertisers, influencers, financial service providers and technology companies found to be assisting unauthorised operators could face penalties of up to four years.
More Regulation
Advertising and Platform Restrictions Expanded
The bill would ban advertising for unauthorised gambling services and introduce tighter controls on how licensed operators market their products.
Regulatory agencies, including the Central Bank of Argentina, Enacom, NIC Argentina and the National Securities Commission, would be given additional authority to monitor transactions, block domains and coordinate enforcement actions.
The proposal follows previous enforcement activity against digital betting products. Earlier this year, Argentine authorities ordered internet providers to block access to Polymarket after a court ruling connected to concerns over unlicensed gambling activity.
Similar scrutiny of prediction markets has emerged globally, with Spain blocking Polymarket and Kalshi during a gambling investigation over questions about whether event-based trading constitutes gambling.
The bill must still pass through Congress before becoming law, but if approved it would significantly expand Argentina’s ability to target the financial networks that support illegal online gambling operations.
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