Brazil Bans Crypto Campaign Donations Ahead of October Vote

Parties and candidates that accept prohibited donations face fines, mandatory repayment to the National Treasury, and potential charges of economic power abuse. The Electoral Public Prosecutor's Office holds authority to investigate illegal contributions, omitted records, and irregular resource use throughout the campaign period.

Brazil's prohibition on cryptocurrency campaign donations does not extend to online crowdfunding, which regulators treat as a separate category. The MPF drew a clear distinction, noting that "virtual currency is different from virtual kitty or crowdfunding," with the latter permitted on TSE-registered platforms since May 15. That clarification is intended to prevent candidates from conflating the two fundraising methods.

Every crowdfunding contribution still requires full identification of the donor, maintaining the same transparency standard applied to traditional bank transfers. The ministry confirmed that "every donation needs to identify who donated," and that funds can only be used after formal candidacy registration. That sequencing ensures oversight agencies can review contributions before they enter active campaign use.

The Central Bank of Brazil broadened its regulatory approach in April by banning prediction markets tied to election outcomes. That decision directly affected platforms such as Polymarket and Kalshi, which were already facing regulatory resistance in other jurisdictions, including the United States.

Brazil's elections cover races for state deputy, federal deputy, senator, governor, and president in the first round on October 4. A second round for governor and president, if required, follows on October 25.