In a significant move against the crypto industry, a court in Argentina has issued a nationwide block on the crypto-based prediction market platform Polymarket, citing unauthorized gambling activities. The order, issued by the Buenos Aires Court of First Instance in Criminal, Contravention and Minor Offenses No. 31, highlights the growing scrutiny of decentralized platforms in the region.
Regulatory Action Escalates
The national communications and media regulator, Ente Nacional de Comunicaciones (ENACOM), received a court order to block access to the Polymarket website and its variants across the country. The court also instructed Google and Apple to remove and restrict the platform’s mobile applications on Android and iOS throughout Argentina, including for existing users. This decision comes after a complaint from the Buenos Aires City Lottery (LOTBA), the state-owned company that regulates gambling activities in the city, alleging that Polymarket operated without the necessary authorization.
Concerns Over Minors and Identity Verification
The authorities argued that Polymarket allowed users to place bets without sufficient identity and age verification, raising concerns that minors could access the platform. “In practice, this meant that anyone — including children and adolescents — could access and start betting without any control,” the authorities reportedly said. This lack of oversight has been a recurring issue in the crypto space, where decentralized platforms often struggle to implement robust KYC (Know Your Customer) and AML (Anti-Money Laundering) protocols.
Global Scrutiny of Prediction Markets
Argentina’s action is part of a broader trend of regulatory scrutiny against prediction markets globally. Countries such as the Netherlands, Hungary, Portugal, and Ukraine have taken similar steps to restrict access to these platforms. In Latin America, Colombia was among the first to take action, with its gambling regulator warning about Polymarket’s unauthorized operations in September 2025. The controversy surrounding these platforms has been further fueled by instances where prediction markets have closely mirrored official data, raising concerns about potential insider trading.
Implications for the Crypto Industry
The court order in Argentina highlights the ongoing challenges faced by decentralized platforms in navigating the regulatory landscape. While prediction markets like Polymarket offer innovative financial tools, they must find a way to balance innovation with compliance. The use of workarounds such as VPNs by users indicates that the battle between regulators and decentralized platforms is far from over.
The future of these platforms will likely depend on their ability to implement robust identity verification processes and work closely with regulators to ensure compliance. As the crypto industry continues to mature, the balance between innovation and regulation will remain a critical issue to watch.
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