Brazil Prosecutors Reinforce Ban on Crypto Donations

With Brazil’s general elections approaching, federal prosecutors have issued a clear reminder that political parties and candidates are prohibited from accepting campaign donations in cryptocurrency. The Federal Public Ministry reaffirmed the existing ban this week, citing the need for full transparency and traceability in political financing.

The prohibition, established by the Superior Electoral Court in December 2019 under Resolution No. 23,607, requires all campaign donations to be made through identifiable, auditable banking channels. Authorities stated that the pseudonymous nature of cryptocurrency transactions makes it difficult for oversight bodies to verify the origin of funds, a core requirement of Brazil’s electoral law. All donations must be reported and proven in campaign finance filings, with the donor’s CPF taxpayer identification number attached.

Permitted donation methods include bank transfers and transactions via PIX, Brazil’s instant payment system operated by the Central Bank, which provides real-time payments with identity verification. The ministry clarified that the ban applies broadly to all cryptocurrencies and digital assets.