No Crypto Allowed: Brazil's Public Prosecutor's Office Tightens Vigilance on Election Funding
Brazil’s Public Prosecutor’s Office (MPF) has reaffirmed its ban on cryptocurrency donations for political campaigns, strengthening oversight ahead of the general election.
On Monday, the office published an article explaining that the prohibition stems from the pseudonymous nature of cryptocurrency, which makes it difficult to identify donors as required by law. Under Brazilian law, all campaign donations must be traceable to a specific individual’s taxpayer ID (CPF). Donations via bank transfers or Pix, Brazil’s instant payment system, are permitted because they automatically capture donor information. Crypto transactions, however, do not guarantee such identification.
The ban was established by the Superior Electoral Court in Resolution No. 23,607 on December 17, 2019, which explicitly excludes candidates and political parties from receiving financial donations in virtual currency.
The MPF clarified that digital crowdfunding for campaigns remains legal, provided donors are properly identified. This type of fundraising has been allowed since the 2017 reform of Brazil’s Election Law and is permitted starting May 15 of each election year.
Candidates who fail to prove the origin of campaign funds or to disclose donations face fines and must return the funds to the treasury. They may also be held accountable for abuse of economic power.
The renewed warning comes amid a surge in crypto-related illicit activity in Brazil. Local media reports that crypto seizures increased by 600% in 2025, reaching $14 million, as criminal groups increasingly use digital assets for money laundering and other crimes.