Brazil Bans Cryptocurrency Payments in Newly Regulated Betting Market

Ban on Crypto

As Brazil officially launched its regulated online betting market on January 1, 2025, a significant and quietly implemented rule has come into focus: a complete ban on the use of crypto for all licensed gambling activities.

This move marks a definitive shift from the country’s grey-market past towards a highly structured and controlled national framework.

Under Normative Ordinance No. 615/2024, licensed operators are now prohibited from accepting cryptocurrency payments, permitting only electronic transfers through authorized channels.

The government’s primary motivation for the ban on crypto is to rebuild trust in the gambling system by ensuring every transaction is traceable and every operator is held accountable.

For years, the anonymity of crypto allowed players to bypass traditional banking systems, a situation that regulators viewed as a significant obstacle to effective oversight and the prevention of illicit financial activity.

While the ban is designed to clean up an industry long tied to grey-market operations, some experts have raised concerns that it could have unintended consequences.

They argue that the prohibition might drive a segment of the player base back to unlicensed offshore sites that continue to accept crypto, potentially undermining the government’s goal of high channelization into the legal market.

However, data from H2 Gambling Capital, which showed that crypto accounted for only 0.7% of all gambling transactions in Brazil’s unregulated era, may have convinced regulators that they could remove this payment method without significantly damaging the overall market.

Brazil’s focus has now firmly shifted from market liberalization to strict enforcement.

The Central Bank has begun actively monitoring crypto exchanges to flag payments linked to illegal betting, and all licensed operators face tighter Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements.

This new rule is a clear message to the industry: Brazil’s market is open for business, but not at the expense of regulatory control and social protection.

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