Brazil Cracks Down on Crypto Prediction Markets, Blocks Kalshi and Polymarket

Brazilian authorities have moved decisively against prediction markets, ordering the blocking of 27 platforms including prominent names like Kalshi and Polymarket. The action stems from a joint initiative between the Ministry of Finance and the National Telecommunications Agency, marking a significant tightening of regulatory oversight.

The crackdown extends beyond cryptocurrency concerns, encompassing broader issues of gambling regulation, consumer protection, and financial system stability. New resolutions explicitly ban contracts tied to sports, politics, and entertainment events, while allowing economic indicator contracts under strict financial market supervision.

This regulatory shift reflects growing global scrutiny of prediction markets operating in legal gray areas. The Brazilian move demonstrates how jurisdictions are drawing clearer boundaries around permissible financial activities involving speculative instruments and digital assets.