Brazil Maintains Crypto Donation Ban Ahead of 2026 National Elections

• Brazil maintains a ban on crypto campaign donations to ensure donor transparency.
• Election crowdfunding remains legal but requires donor checks and TSE approval.
• Authorities warned that violations of campaign finance rules may result in fines and investigations.

Brazilian authorities have reaffirmed restrictions on the use of cryptocurrencies in election-related activities as the country approaches its general elections, strengthening rules intended to ensure transparency in political financing and tightening oversight of digital asset use within regulated financial channels.

The Federal Public Prosecutor’s Office (MPF) published an explanatory article on June 22 outlining why cryptocurrency donations to political parties and candidates remain prohibited. According to the agency, the restriction has been in place since December 2019 following the approval of Resolution 23.607/2019 by Brazil’s Superior Electoral Court (TSE).

The clarification comes ahead of Brazil’s election cycle, with the first round of voting for president, governors, senators, and federal and state representatives scheduled for October 4. A second round, if required, is expected on October 25.

In its explanation, the MPF stated that electoral donations must be fully identifiable. While voters can contribute via PIX and traditional bank transfers, donations made in cryptocurrencies are not permitted because electoral rules require clear identification of donors.

The agency noted that cryptocurrencies are considered pseudo-anonymous, which can make it difficult to verify the identity of individuals behind transactions. For that reason, authorities have linked the ban directly to transparency requirements that govern campaign financing.

The TSE reaffirmed the restriction last month, underscoring that the rule remains in force during the current election period.

At the same time, the MPF highlighted that crowdfunding campaigns for political purposes remain allowed. These fundraising efforts, however, must comply with donor identification requirements and can only be conducted through registered and authorized platforms authorized by the TSE.

Authorities warned that violations of campaign finance rules may result in penalties, including fines, repayment of improperly received funds to the National Treasury, and potential investigations related to abuse of economic power.

Alongside campaign finance rules, Brazil has imposed limits on election-related prediction markets.

In April, authorities prohibited betting activities tied to political, electoral, social, and cultural events. The measure affected prediction market operators, including Polymarket and Kalshi, which had previously offered contracts linked to political outcomes.

With Brazil’s elections approaching, authorities are reaffirming rules designed to keep campaign financing transparent and ensure electoral activities remain within established regulatory frameworks.

Related:Brazil Blocks Polymarket and Kalshi in Betting Crackdown