Crypto Prediction Markets Face Crackdown in Latin America — Polymarket Pulled From App Stores in Argentina

Key Takeaways

Argentina has ordered a nationwide ban on Polymarket, citing unlicensed gambling concerns.
Authorities directed ISPs and app stores to block access across the country.
The move contrasts with the U.S., where regulators are working to integrate prediction markets into formal financial oversight.

Prediction markets are moving in two very different directions depending on where you look.

In some countries, they are emerging as a new financial tool—regulated, debated, and increasingly legitimized.

In others, they are being treated as little more than online betting platforms operating outside the law.

Argentina has made its position clear.

On March 16, a Buenos Aires court ordered a nationwide block of Polymarket, one of the largest crypto-based prediction market platforms, escalating a growing regulatory pushback in Latin America.

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Argentina Moves To Block Polymarket

The ruling, issued by Judge Susana Parada, followed a complaint from the Buenos Aires City Lottery (LOTBA) and the Argentine Chamber of Casinos and Bingos (CASCBA).

Authorities concluded that Polymarket operates as an unlicensed online betting platform rather than a legitimate financial product.

The court’s orders are broad.

Argentina’s telecom regulator, ENACOM, must coordinate with internet service providers to block access to Polymarket and related domains nationwide.

At the same time, Apple and Google have been instructed to remove the app from their stores for Argentine users and restrict access, including for existing users.

The enforcement places Argentina alongside Colombia as one of the few countries in Latin America to fully block the platform.

Globally, more than 30 jurisdictions have imposed restrictions on Polymarket in some form.

Implementation is expected to roll out gradually as telecom providers and app stores comply with the order.

Why Authorities Took Action

Argentine authorities framed the decision as a consumer protection measure rather than a stance against crypto itself.

Investigators from the specialized gambling prosecution unit (FEJA) argued that Polymarket allows users to place bets on real-world outcomes without meeting local regulatory requirements.

According to the complaint, users can fund accounts with crypto or traditional payment methods, open accounts quickly, and participate without standard identity or age verification processes.

Regulators said this creates exposure to financial risks, including potential access by minors.

Prosecutors described the platform as a “hidden online betting system,” where users wager on binary outcomes—such as whether a political or economic event will occur—outside the country’s licensed gambling framework.

The ruling emphasized concerns around fraud, addiction, and lack of oversight, positioning the ban as a safeguard for users.

The decision also follows heightened scrutiny of Polymarket’s growing visibility in Argentina.

In February 2026, the platform correctly anticipated inflation data shortly before the official release.

This drew attention to its influence and prompted questions about how such markets operate.

A Different Approach in the United States

While Argentina is restricting access, the United States is moving in the opposite direction.

Rather than banning prediction markets outright, U.S. regulators are working to define how they fit within existing financial laws.

The Commodity Futures Trading Commission (CFTC), which oversees derivatives and event contracts, has taken steps to clarify its role in supervising these platforms.

On March 12, the CFTC issued guidance outlining compliance expectations for markets offering event-based contracts.

It also opened a public consultation process to evaluate how prediction markets should be regulated going forward.

The agency is examining issues such as market integrity, potential manipulation, and which types of contracts may be considered inappropriate or against the public interest.

This approach reflects a broader effort to treat prediction markets as financial instruments rather than traditional gambling products, placing them under federal oversight instead of state-level gaming laws.

At the same time, debate continues within the U.S. Some lawmakers have raised concerns about certain types of contracts, particularly those tied to sensitive or high-risk events.

CFTC Chairman Michael Selig emphasized promoting “responsible innovation” while reassuring the public of federal oversight. The agency views platforms like Polymarket and Kalshi as legitimate derivatives markets rather than state-regulated gambling.

A Split Global Landscape

The contrasting approaches highlight a widening divide in how governments view prediction markets.

Argentina’s decision reflects a regulatory framework that treats these platforms as unlicensed gambling and prioritizes restriction.

The U.S. approach, by contrast, attempts to bring them into an existing financial system through oversight and rulemaking.

Both approaches address similar concerns—consumer protection, market integrity, and misuse—but arrive at different conclusions about how the sector should evolve.

As prediction markets continue to grow in popularity, especially during periods of political or economic uncertainty, that divide is likely to become more pronounced.

For now, Argentina’s ban signals that in some parts of the world, the line between financial innovation and gambling remains firmly drawn—and tightly enforced.