Key Highlights:
- Crypto News: Argentina blocks Polymarket over unlicensed betting concerns.
- Colombia and Brazil also tighten rules on prediction markets.
- US regulators face legal pushback from Polymarket and Kalshi.
Argentina has reportedly ordered a nationwide ban on Polymarket, a prominent prediction market platform. This crypto news comes on allegations that the platform operated as an unauthorized betting service.
The court-backed decision highlights the growing scrutiny over prediction markets worldwide. This also marks one of the strongest regulatory crackdowns on Polymarket and similar platforms.
Crypto News: Argentina Blocks Polymarket Over Betting Concerns
According to the latest crypto regulation news related to prediction markets, Polymarket has faced a nationwide ban in Argentina. A court in Buenos Aires has ordered the blocking of access to the prediction market platform after a complaint from the Buenos Aires City Lottery (LOTBA).
Notably, the LOTBA alleged that Polymarket was operating like an unlicensed online gambling platform. They also accused the platform of permitting minors to participate in betting.
As per this crypto news, the investigation was supported by the Judicial Investigations Unit (CIJ) of the Buenos Aires Public Prosecutor’s Office. The team found that Polymarket was essentially running a hidden betting system under the name of prediction markets.
They stated that the platform allowed users to make transactions using cryptocurrencies and credit cards, without proper identity or age checks. People could sign up within minutes, which raised serious concerns about user safety and potential misuse.
As part of the crypto news, the authority has also asked Google and Apple to limit access to Polymarket’s mobile apps in the country. This indicates that the government is taking strict steps to fully block the platform. The authority does not just target its website; it also seeks to prevent users from accessing it by any means.
Crypto News: Polymarket Ban Expands Across Latin America
Notably, Argentina has now become the second country in Latin America to issue a complete ban on Polymarket. The move was first made by Columbia. Regulators in Colombia saw the prediction market as something that lies between trading and betting.
Gaming regulator Coljuegos banned Polymarket, saying it broke the country’s gambling laws by allowing users to place bets on political events, including elections, which are strictly prohibited. The authority asserted that the platform was collecting money and offering crypto-based bets without proper approval.
Last year, Marco Emilio Hincapié, President of Coljuegos, noted, “We want to inform Colombians that this website is illegal and does not have the necessary permits to operate online gaming in Colombia.”
Global Scrutiny on Prediction Markets Intensifies
In related crypto news, prediction market platforms like Polymarket and Kalshi are also facing increased scrutiny in Brazil. Regulated betting platforms in the country have requested the Secretary of Prizes and Betting (SPA) to block these platforms. They argue that these platforms are currently operating in Brazil without proper regulations.
Prediction markets’ growing scrutiny in the US has also recently made headlines. While many crypto exchanges and platforms have stepped into prediction markets, state regulators have intervened with strict regulations. While multiple state authorities have sued Polymarket and Kalshi for offering unregulated betting services, the platforms have responded by filing lawsuits against them.
According to this crypto news, prediction market platforms question the state regulators’ jurisdiction over them. They argue that prediction markets come under the control of the Commodities Futures Trading Commission (CFTC).