Argentina Limits Gambling-Related Payments for International Markets

If you come from Argentina and plan to place crypto wagers or purchase the cryptocurrency, you should prepare for some issues. If you intend going abroad, make sure to learn restrictions for gamblers traveling outside of the Argentina borders.

Details

Central Bank of the Argentine Republic (BCRA) has just announced currency controls that are directed to lowering the use of credit, debit and prepaid cards outside of the country. The restrictions are applicable to s having “participation in gambling and betting of different types.”

Argentina’s financial institutions and domestic card issuers were informed that they should obtain BCRA’s before accessing the foreign exchange market and making international payments. The obligation came into effect starting from November 1. BCRA has also introduced a US $50 limit on cash advances for residents who are going outside of borders.

Argentine Bank has also restricted fund transfers to s to payment service operators or outside investment managers. Additionally, residents will come across restrictions regarding cryptocurrency purchases.

All these limitations are predicted to prevent capital flight and keep foreign exchange reserves stable. As a reminder, the country’s peso has just undergone double-digit devaluation after national elections. The local currency has further decreased over the previous months when left-oriented parties announced the victory at presidential elections.

Reasons for Restriction

Argentina has introduced crypto limitations due to the “dollar casino mechanics“ phenomenon. According to this practice, Argentinian gamblers were using a credit card to purchase chips in venues outside of the country and then paying out these chips for the currency which isn’t subject to the „peso’s downward trajectory.“

After the overturn in local policy and recent elections, the question of online gambling legalization will remain uncertain. As a reminder, before defeating at local elections, Buenos Aires governor, María Eugenia Vidal, planned to issue licenses to seven online operators.

Problems with Buenos Aires licensing process has started this summer. The political atmosphere is still uncertain across the state. If the Buenos Aires governor leaves the office before December 10, without the solution for the burning problem, the future of gambling licensing will remain in hands of Axel Kicillof. However, his view on gambling licensing is still unclear.

Source:

“Argentina restricts international payments for gambling, crypto“, Peter Amsel, calvinayre.com, November 4, 2019.