Brazil Cracks Down on Prediction Market Platforms Amid Betting Regulation Concerns

Brazil has imposed restrictions on prediction market platforms and tightened derivatives rules to prevent 'bet-like' financial products. The move, led by Finance Minister Dario Durigan, aims to align with betting regulations approved by Congress, impacting 27 firms in Latin America's largest economy.

Brazil has taken decisive action to curtail prediction market platforms and tightened rules on derivatives, viewed as 'bet-like' products. According to Finance Minister Dario Durigan, these platforms contravene betting laws approved by Congress.

In a press conference, Durigan announced that 28 platforms had been shut down by telecoms regulator Anatel. The Finance Ministry later revised this to 27. Popular platforms such as Polymarket and Kalshi were offline by Friday afternoon.

The National Monetary Council has established which underlying assets can be used in derivatives trading, banning those linked to sports, online gaming, and political events, among others. The council mandates derivatives contracts must be linked to economic and financial benchmarks only.