It is the first time that an Argentine law mentions “crypto” providers against gambling addiction.
Penalties of 2 to 4 years in prison are established for providing “crypto” services to illegal platforms.
The Government of Argentina, through the Ministry of Health, presented to Congress a bill for the prevention of gambling addiction and the regulation of online gambling, which marks a milestone by explicitly including, for the first time, providers of virtual asset (cryptocurrency) services within its scope of application.
The initiative seeks to establish a comprehensive regulatory framework for online betting and gambling, limiting its advertising, “protecting vulnerable populations—especially children and adolescents—and combating illegal gambling.”
He bill establishes a clear prohibition. banks, fintechscryptocurrency exchanges and wallet providers They will not be able to offer their services or facilitate transactions to betting platforms and online casinos that operate without an official license in Argentine territory.
According to the text of the project, inter-institutional coordination will be strengthened between the Central Bank of the Argentine Republic (BCRA), the National Securities Commission (CNV), the National Communications Entity (ENACOM) and NIC Argentina (National Directorate of the Internet Domain Registry).
The objective is to effectively block both technical access and fund flows, including those made through cryptocurrenciestowards unauthorized operators.
In addition, the project proposes modifications to the Penal Code that contemplate prison sentences of two to four years for people or companies that provide essential financial, technological or digital asset services to these illegal platforms.
Cryptoasset exchanges and providers will need to implement more rigorous due diligence controls, transaction monitoring, and know-your-customer (KYC) policies to comply with the new obligations.
More regulations for cryptocurrencies
Although the majority agree on the need to combat gambling addiction, the inclusion of cryptocurrencies has generated debate in the sector. Specialists warn that the measure could significantly increase operating costs and regulatory burden for local exchangesaffecting its competitiveness against international platforms.
“The industry understands that, given the nature of virtual assets, an excess of regulation or tax burden could imply the paradox of greater informality and a tendency to operate towards foreign/deregulated exchanges, contrary to the objectives proclaimed by the regulations and seriously affecting the industry and its users alike,” explained in March the Argentine Fintech Chamber.
Looking ahead, it is expected that this initiative will feel precedent for the development of broader regulation of the cryptocurrency ecosystem in the country.
In March of this year, the Buenos Aires Justice ordered the total blocking of access to Polymarket, the main global platform for prediction markets based on cryptocurrencies, for operating as a betting house without authorization.
This measure made Argentina one of the first Latin American countries to completely block the platformincluding the elimination of its applications in Google and Apple stores, as reported by CriptoNoticias.
The current project represents an important advance in the regulation of digital assets in Argentina. However, its success will largely depend on the real capacity of the authorities to supervise the use of cryptocurrencies in an environment inherently resistant to centralized controls.