Argentina targets crypto gambling payments

Argentina has introduced a new bill targeting crypto gambling payments and illegal online betting platforms as regulators increase scrutiny of prediction markets and digital asset-based gambling services.

The proposed legislation would block banks, payment companies and virtual asset providers from offering services to unauthorised gambling operators in Argentina. As reported by Crypto News, the bill forms part of the government’s wider push to regulate online betting and reduce gambling addiction, particularly among minors.

Argentina’s Ministry of Health said the proposed Bill for the Prevention of Gambling and Regulation of Online Gambling aims to organise the country’s virtual betting market while strengthening protections for children and teenagers accessing online gambling platforms. The proposal would involve several government agencies, including Argentina’s central bank, securities regulator, communications authority and national domain registry.

Argentina bill targets crypto gambling payments

The proposed law directly targets crypto gambling payments by prohibiting financial institutions and crypto service providers from supporting illegal betting platforms. According to the ministry, as reported by Crypto News, “financial entities, payment service providers or virtual asset providers are prohibited from offering their services to unauthorized gambling operators.”

The measure would place cryptocurrency exchanges, payment processors and fiat on-ramp providers inside Argentina’s gambling enforcement framework.

If approved, the legislation could force crypto firms operating in Argentina to introduce stronger compliance systems, identity verification procedures and transaction monitoring linked to online betting activity. The bill could also disrupt offshore gambling websites that rely on cryptocurrency deposits after losing access to traditional banking channels.

Argentina increases pressure on prediction markets

The proposal comes amid growing international pressure on crypto-based prediction markets and event betting platforms. Earlier this year, a Buenos Aires court ordered a nationwide block on Polymarket after authorities argued the platform operated outside Argentina’s gambling regulations.

Officials also raised concerns about crypto payments, weak identity verification systems and potential access by minors.

Argentina’s latest move follows similar actions in other countries targeting prediction markets and crypto gambling services. Spain recently blocked Polymarket and Kalshi over gambling licence concerns, while India classified crypto-based prediction markets as prohibited online money gaming services. Regulators globally are increasingly treating event-based betting platforms as gambling operators when users stake real money on uncertain outcomes.

Bill proposes prison terms for illegal gambling operators

Argentina’s proposal would also introduce tougher criminal penalties for illegal gambling activity. Under the bill, individuals who run or organise unauthorised betting systems could face prison sentences of between three and six years.

The legislation also proposes prison terms of two to four years for individuals or companies that provide key financial, advertising, technology or digital infrastructure services to illegal gambling operators.

The government is also seeking tighter advertising controls linked to online betting. Media companies, influencers, advertising agencies and digital platforms would be required to verify that gambling operators hold official approval before promoting their services in Argentina.

The bill still requires congressional approval before becoming law. If passed, Argentina would gain broader powers to disconnect illegal gambling operators from banking systems, payment processors and crypto transaction networks. The proposal could also become a significant test case for how Latin American governments regulate crypto gambling payments and prediction market platforms in the future.

Crypto adoption in Argentina

Last year, Argentina was considering a major policy shift that would allow domestic banks to trade digital assets and offer crypto-related services. The Central Bank of the Argentine Republic (BCRA) has been reviewing its current framework, which prohibits banking institutions from participating in digital asset activities, La Nación reported, citing sources familiar with the discussions.

Crypto adoption has been gaining momentum in the country. A report by ApeX Protocol listed Argentina among the top 10 countries with high crypto engagement. In Argentina, bitcoin adoption has increased in response to inflation.