Argentina has formally ordered a nationwide block on prediction market platform Polymarket, after a Buenos Aires court ruled the platform operated as an unlicensed crypto gambling service. The court instructed ENACOM, the national telecom regulator, to restrict all access to Polymarket within Argentina, and directed both Apple and Google to remove the Polymarket app from their stores. The order applies even to users who have already downloaded the app, effectively cutting off local access.
LOTBA and CASCBA Filed Complaints
The case started when the Buenos Aires City Lottery (LOTBA) and the Argentine Chamber of Casinos (CASCBA) brought complaints to the court, alleging Polymarket was offering betting services without any local license. The court found that Polymarket allowed users to place wagers using cryptocurrencies and credit cards, with no regulatory oversight. Judge Susana Parada presided over the case, with the gambling prosecutor's office (FEJA) assisting. After the ruling, ENACOM moved quickly to implement the block, issuing directives to internet service providers.
Key Safety Issues: No Identity Checks, Fast Account Creation
In its ruling, the court highlighted several risks. Polymarket enables account creation within minutes, supports deposits and withdrawals in crypto and via credit cards, and does not require identity or age verification. Authorities argued that these features made the platform particularly risky for younger users and could facilitate money laundering. The court noted that the lack of basic KYC (Know Your Customer) procedures exposed users to potential fraud and loss.
Inflation Data Leak Controversy
The timing of the block was influenced by a data leak incident. Reports showed that Polymarket displayed a 2.9% inflation figure roughly 15 minutes before INDEC, Argentina's statistics agency, released the official number. This raised serious concerns about data misuse and platform credibility. While it remains unclear how Polymarket obtained the data, the incident added pressure on regulators to act against the platform.
Polymarket Now Blocked in 34 Countries; CFTC Bucks the Trend
With Argentina joining Colombia, Polymarket is now fully restricted in at least 34 countries worldwide. Despite the growing list of bans, not all regulators share the same view. The U.S. Commodity Futures Trading Commission (CFTC) recently dropped its 2024 draft rule that aimed to prohibit political prediction markets, signaling a more permissive approach in certain segments. This regulatory divergence creates a complex environment for Polymarket as it operates across different jurisdictions.