Cryptocurrency usage in Brazil has surged in popularity, with recent data indicating that 24% of Brazilians surveyed are investing in digital assets, while a staggering 80% advocate for clearer regulatory frameworks governing these transactions. Despite this growing acceptance and the associated benefits, the regulatory landscape surrounding cryptocurrency use in Brazil’s online casino sector remains ambiguous. Challenges persist due to the absence of definitive regulations and restrictions on certain forms of cryptocurrency payments.
Efforts are underway to address these issues through provisional measures and legislative bills aimed at regulating online betting and cryptocurrency use, promising enhanced security and player protection. The Ministry of Finance’s Prizes and Betting Secretariat has taken steps in this direction with the publication of Ordinance 827, which outlines authorization criteria for commercial sports betting and online casino operations. This ordinance mandates stringent anti-money laundering policies, procedural guidelines, and internal controls.
Detailed payment protocols are specified in Ordinance 615, which delineates transaction norms for sports betting and online gaming operators. These regulations are designed to bolster sector transparency and security by stipulating permissible payment methods, deadlines for prize disbursement, and financial obligations for operators.
Key provisions include the approval of PIX, TED, and debit or prepaid cards for transactions, while cash, payment slips, cryptocurrencies, and credit cards are prohibited to mitigate fund origin identification challenges and prevent financial overextension. Operators are compelled to remit winnings within 120 minutes post-event, with PIX emerging as the preferred option for 99.5% of bettors, as reported by a prominent Brazilian casino.
Additional regulatory mandates enforce the segregation of player funds from operational accounts under Law No. 14.790/2023, alongside a mandatory R$5 million financial reserve per licensed operator to ensure solvency and timely financial obligations. Stringent reporting requirements on suspicious transactions to the Financial Activities Control Council (COAF) are mandated to curb money laundering, complemented by responsible gambling initiatives. These include bans on athlete endorsements in advertisements and a requirement for a Brazil-based call center to support bettors.
Disclaimer: The opinions expressed in this article are for informational purposes only and do not constitute financial or investment advice. Cryptocurrency investments carry inherent risks of financial loss.
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