Brazil Upholds Crypto Donations Ban for Political Parties and Candidates

Brazilian authorities have decided to uphold the ban on the use of cryptocurrency donations for political parties and candidates in the country. The nation’s electoral court, known as the Tribunal Superior Eleitoral (TSE), stated that it would maintain the existing prohibition on crypto donations until the 2024 municipal elections. The TSE believes that this ban will contribute to transparency and proper tracking of campaign donations, in line with legal and accountability requirements. The ruling requires all donations, even those under $200, to be made by bank transfer and subject to cross-checking. Failure to abide by these rules may result in censure from the Public Prosecutor’s Office and the TSE court system. The crypto community was hopeful for a change in this policy given the growing adoption of cryptocurrencies in Brazil and the wider Latin American region. However, the TSE’s decision is intended to protect the electoral process against irregular or illicit practices.