- Brazilian regulators ordered the shutdown of 27 prediction market platforms, including Kalshi and Polymarket, deeming them illegal under current law.
- A new resolution will ban contracts tied to sports, politics, or entertainment events, allowing only those linked to economic indicators like inflation.
- The government cited concerns that these platforms could worsen household debt levels, particularly among vulnerable consumers.
- This move aligns with a broader international trend, as several European countries have also taken action against prediction markets.
Brazilian authorities announced a major crackdown on Friday, moving to block 27 prediction market platforms, including international heavyweights Kalshi and Polymarket. The decision, enforced by the National Telecommunications Agency, stems from a directive by the Ministry of Finance and cites a lack of legal framework for such services.
Authorities claimed these platforms suffered from a period of regulatory anarchy from 2018 to 2022. Consequently, the National Monetary Council issued Resolution 5.298, which takes effect in early May and sharply limits permissible contracts. Under the new rules, wagers on sports, politics, or entertainment are banned as they are considered akin to gambling.
Only contracts based on economic indicators like inflation or commodity prices will remain allowed. Meanwhile, Finance Ministry official Dario Durigan argued these markets could deepen household debt, stating, “At a time when we are working to reduce debt levels… we must also prevent new forms of harmful indebtedness.”
The list of blocked services includes PredictIt, Robinhood‘s forecasting feature, and Brazilian-focused sites like Palpita. This action reflects a growing international trend, with several European nations having previously blocked or penalized similar platforms.
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