Particle.news
Download on the App Store

Brazil Blocks Prediction Platforms and Bans Non‑Economic Event Derivatives

Officials say the move protects consumers by closing a loophole that let gambling-style bets pose as derivatives.

Overview

  • Brazil’s telecom regulator Anatel blocked access to prediction‑market sites Friday, a tally first put at 28 and later revised to 27, leaving Polymarket and Kalshi offline in the country.
  • The National Monetary Council and the Central Bank narrowed what can underlie derivatives to economic and financial benchmarks such as price indexes, interest rates, and exchange rates.
  • The new rules also ban contracts tied to sports, online gaming, elections, cultural events, and other outcomes that do not track an economic measure.
  • Officials said these platforms sold yes‑or‑no event contracts as finance but worked like betting, raising risks to savings and adding to household debt worries.
  • The crackdown adds Brazil to a growing list of places curbing event markets, with Portugal’s recent limits and actions in several U.S. jurisdictions cited by industry reports.