Argentina's anti-gambling law has for the first time included cryptocurrency exchanges under regulation, with violations punishable by 2 to 4 years in prison.

On May 28th, CriptoNoticias reported that the Argentine government, through the Ministry of Health, has submitted a bill to Congress aimed at preventing gambling addiction and regulating online gambling. This bill explicitly includes virtual asset service providers within its regulatory scope for the first time. The proposed legislation prohibits banks, fintech companies, cryptocurrency exchanges, and wallet providers from offering services or facilitating transactions for unlicensed gambling platforms operating in Argentina. Furthermore, it suggests amending the criminal code to impose prison sentences of two to four years on individuals or companies providing financial, technical, or digital asset services to these illegal platforms. Exchanges and crypto asset providers will be mandated to implement enhanced due diligence, transaction monitoring, and Know Your Customer (KYC) policies. The Central Bank of Argentina, the National Securities Commission, the National Communications Commission, and NIC Argentina will bolster inter-agency coordination to effectively block technological access and capital flows.