Argentina has moved to block access to crypto-based prediction market platform Polymarket nationwide amid an escalation in regulatory scrutiny of such services in Latin America.
The move comes after a court in Buenos Aires ordered the country’s telecom regulator, ENACOM, to limit access to the platform by internet service providers.
In its ruling, the court not only ordered the restriction of the internet service providers but also ordered tech giants Google and Apple to remove the application from the stores of users based in Argentina.
The move will ultimately result in limiting the platform’s usage by users from all sources.
Regulatory hurdles rise for Polymarket
It is important to note that the authorities made the decision after establishing that Polymarket is an unlicensed online gambling service. The platform claims to be a prediction market that allows users to bet on the outcomes of real-world events using cryptocurrency, but the authorities claim that the main function of the platform resembles traditional betting, which is heavily regulated in Argentina.
Additionally, the case was initiated after the Buenos Aires City Lottery (LOTBA) lodged a complaint with the authorities, as they are the ones mandated with the responsibility of regulating gaming and gambling in the region.
The authorities’ decision means that Argentina is joining the list of countries that are cracking down on cryptocurrency betting services.
With the decision, Argentina joins the list of countries in the region, after Colombia, that have banned the use of the Polymarket service in the region.
Prediction markets face heightened issues with governments
The development points to the larger dichotomy that exists between the newly forming blockchain-based platforms and the more traditional regulatory environment.
Prediction markets such as Polymarket are often global and utilize decentralized technology, making it difficult for regulators to address the platforms with existing legislation.
Yet, they are also being viewed in the context of existing gambling legislation. For the crypto world as a whole, the development points to the importance of regulatory and licensing requirements within individual nations as governments around the world begin to crack down.
As more nations evaluate the regulatory environment for such platforms, Polymarket and other services may find themselves forced to adapt.