Brazil Bans Crypto in Regulated Betting Market

Brazil has banned cryptocurrency payments in its newly regulated online betting market, marking a decisive break from practices that once flourished in the country’s unregulated sector. The prohibition, enforced under Normative Ordinance No. 615/2024, took effect on 1 January 2025 alongside the launch of Brazil’s licensing regime for betting operators.

The rule requires all licensed platforms to accept payments only through electronic transfers in fiat currency, effectively excluding Bitcoin and other digital assets from legal gambling operations.

 

Item	Policy	Effective	Impact
Crypto payments	Banned for licensed operators (Normative Ordinance No. 615/2024)	1 Jan 2025	Operators must use fiat electronic transfers; potential offshore migration risk

Government targets transparency and financial control

The cryptocurrency ban is part of the government’s strategy to tighten control over betting-related financial flows. Regulators have framed the measure as necessary to close loopholes that enabled anonymous or lightly regulated transactions in the former “grey market.” Industry analyst Dmitry Starostenkov noted that although blockchain transactions are traceable, they still present greater regulatory challenges than traditional payment systems. Officials argue that licensed operators must comply with anti-money laundering (AML) and counter-terrorist financing (CTF) requirements—compliance that is harder to monitor through decentralised payment networks.

Brazil’s Central Bank has stepped in as an enforcement partner. It now monitors domestic crypto exchanges for suspicious activity linked to unlicensed gambling sites, part of a broader effort to combat illegal offshore betting.

Cryptocurrency gained traction in Brazil’s offshore gambling scene before the country's regulatory overhaul. Between the initial legalisation of sports betting in 2018 and the final regulatory framework introduced by Law No. 14,790 in December 2023, crypto casinos marketed themselves as fast, anonymous alternatives to traditional payment platforms. However, industry data suggests the trend was not as widespread as perceived. According to Ed Birkin of H2 Gambling Capital, only 0.7% of gambling transactions in Brazil involved cryptocurrencies before regulation. He described crypto’s role in the market as “minor” despite its visibility in online discussions.

The betting industry is divided on the implications of the crypto ban. Supporters say it enhances the integrity of Brazil’s market and promotes responsible gambling standards tied to know-your-customer (KYC) protocols. Licensed operators have begun to emphasise localisation and safer payment methods to build player trust. Critics warn the policy could push crypto-savvy players back to offshore platforms, undermining channelisation efforts. Without crypto options, some bettors may return to unregulated websites that accept digital assets and operate outside Brazilian oversight.

 

Broader context: Brazil’s push for a structured betting market

The ban is one component of Brazil’s broader regulatory agenda aimed at:

• Eliminating black-market operators
• Increasing tax transparency
• Enforcing responsible gambling measures
• Reducing financial crime linked to betting

Despite its firm stance, Brazil’s policy is not expected to set a global standard in the short term. The crypto gambling market worldwide remains fragmented, and adoption varies by jurisdiction. Globally, Birkin estimates actual crypto gambling activity at around $3.5 billion, far below inflated projections commonly cited in industry reports.

 

The real challenge for Brazil will be stopping players from turning back to offshore crypto sites, which remain outside regulatory oversight

 

Outlook

Brazil’s crypto ban reflects a regulation-first strategy. While it may improve oversight and reduce financial risk, its long-term success will depend on whether the regulated market can retain players who previously operated in the grey economy. If not, the ban may widen the divide between legal and offshore gambling activity. For now, cryptocurrency remains off the table in Brazil’s regulated betting industry—and unlikely to return without a major policy shift.