Argentina Blocks Polymarket Over Unlicensed Gambling
Suspicious trading activity triggered Argentina's investigation into Polymarket. Three wallets placed ₱1,664,853 ($27,885) in wagers on the 2.9% INDEC inflation outcome just 15 minutes before the statistics agency released February inflation data.
Key Takeaway
Argentina's first-in-LATAM Polymarket ban shows regulators cracking down on prediction markets faster than traditional crypto.
Judge Susana Parada ordered Google and Apple to restrict Polymarket access nationwide after Buenos Aires gambling regulators filed a complaint against the prediction market platform.
Lotería de la Ciudad de Buenos Aires confirmed Polymarket lacks licenses in any Argentine jurisdiction. Prosecutor Juan Rozas, who led the investigation from Buenos Aires' specialized gambling prosecution office, flagged the platform's unregulated betting operations and missing identity verification checks that let users create accounts in seconds.
Three wallets placed ₱1,664,853 ($27,885) in wagers on the 2.9% INDEC inflation outcome just 15 minutes before Argentina's statistics agency released February inflation data showing exactly 2.9%, above forecasts of 2.6% to 2.8%. Journalist Fernando Molina documented how the three accounts scaled bets from under ₱597 ($10) to ₱119,409 ($2,000), ₱119,409 ($2,000), and $500 respectively right before the announcement.
The court also ordered ENACOM, Argentina's national communications agency, to mandate internet service providers block the platform. Argentina became the first Latin American country to impose a nationwide Polymarket ban.
The Argentina block affects roughly 1% of Polymarket's ₱1.8 trillion ($30.2 billion) monthly volume. Prosecutors highlighted risks of minors accessing the platform due to the lack of age verification and the country's move reveals a fragmented crypto policy approach — restricting prediction markets while simultaneously promoting crypto ETF products.
This article was written based on reporting from CryptoPotato.
