The electoral court in Brazil has upheld a ban on the use of cryptocurrency donations for funding political campaigns. The ban covers the period leading up to the 2024 municipal elections, with the upcoming polls scheduled for October this year. The ruling specifically prohibits the use of virtual currencies and pre-paid cards managed by third parties for electoral expenses, with a focus on transparency and proper tracking of campaign donations. The regulator aims to supervise the fairness of the electoral process and protect against irregular or illicit practices.
All political donations, including those less than $200, must be made by bank transfer and subject to cross-checking, according to the updated rules. The ban on cryptocurrency donations was first introduced in December 2019 and has since been reiterated in subsequent guideline updates. Despite hopes for a change due to the increasing adoption of cryptocurrency in Brazil and Latin America, the electoral regulator has maintained its stance against crypto donations. Candidates are required to disclose their expenses and donated income in mandatory financial statements or risk facing consequences from the Public Prosecutor’s Office and the court system.
In the lead-up to the 2024 elections, the crypto community received a significant boost with a $1 million donation from MoonPay to the Stand With Crypto campaign. The donation signifies the ongoing support for cryptocurrency advocacy and initiatives in Brazil. Meanwhile, Nubank, one of the world’s largest digital banks, continues to make waves in the financial sector, surpassing 100 million clients across its operations in Brazil, Mexico, and Colombia. Nubank recently announced plans to allow its customers to make Bitcoin and Ethereum withdrawals from its banking app, catering to the growing demand for digital assets in the region.
As Brazilians prepare to go to the polls in October to vote for mayors, deputy mayors, and local councilors in over 5,500 regions, the regulations surrounding political campaign funding are being closely monitored. The electoral court’s decision to uphold the ban on cryptocurrency donations underscores the importance of transparency and accountability in the electoral process. By enforcing these rules, the regulator aims to prevent any potential irregular or illicit practices that may undermine the integrity of the elections. Ultimately, the TSE’s commitment to supervising the fairness of the electoral process remains a top priority as the country approaches the upcoming municipal elections.
