Rio Cracks Down: City Bans Cryptocurrency Betting Payments, Tightens Oversight with Banking Transfers

Rio slams the brakes on crypto gambling—traditional banking takes center stage.

The Regulatory Hammer Drops

Digital asset payments get shown the door while bank transfers become the new gatekeeper. No more anonymous crypto flows—every transaction now faces traditional financial scrutiny.

Banking System Embraces the Spotlight

Financial institutions inherit full oversight responsibility. They're tracking every real, monitoring each transaction, playing regulator instead of just facilitator.

The Compliance Squeeze

Betting operators scramble to adapt—their crypto payment rails just got severed. Compliance costs skyrocket while operational flexibility plummets.

Another victory for traditional finance—because nothing says innovation like forcing new technology to fit old systems. The banks win again, proving that in the battle between disruption and regulation, the established players still write the rules.

The betting landscape in Rio de Janeiro is about to change dramatically. The state’s Consumer Defense Authority has unveiled Resolução SEDCON 66/2025, a bold regulation that prohibits the use of cryptocurrencies for gambling payments and requires all transactions to flow through Brazil’s regulated banking system. Officials say the MOVE is aimed at ensuring transparency, consumer protection, and reducing financial crime risks within the state’s fast-growing betting industry.

Betting in Rio Now Tied to Regulated Banking

According to crypto expert Ben Boland, crypto betting sites have taken global attention by offering U.S. gamblers and international players a wide range of digital coin options for deposits and withdrawals. Many of these platforms also offer bigger promotions, competitive odds, and an array of innovative features. But in Rio de Janeiro, that model is now off the table.

The new resolution mandates that all betting transactions must go through payment systems overseen by the Brazilian Central Bank. This includes popular channels like Pix, TED bank transfers, debit cards, prepaid cards, and same-bank account transfers. The resolution explicitly bans alternative payment methods such as cash, checks, credit cards, and, most notably, cryptocurrencies.

Authorities emphasize that every transfer must be made between verified accounts belonging to the bettor and the betting operator. Third-party deposits and payments from unknown sources are strictly prohibited. The Rio Procon agency, responsible for consumer protection, will monitor compliance and has the authority to impose fines or suspend operators who fail to respect the rules.

Crackdown Reflects National Legal Context

The state’s decision aligns with Brazil’s national betting law, Law 14.790/2023, which regulates fixed-odds games. That law requires betting transactions to remain within financial channels supervised by the federal government. By following the national framework, Rio is strengthening Brazil’s wider campaign against illegal financial flows in the betting market.

Officials argue that by banning cryptocurrency transactions, the state reduces the risk of money laundering, tax evasion, and other financial crimes. “The aim is to protect bettors and ensure a transparent betting environment,” a spokesperson from the Consumer Defense Authority said during the announcement.

The resolution also touches on social responsibility. Regulators compared the dangers of excessive betting to those of drug abuse, highlighting the importance of setting monetary limits to curb problem gambling. Tying payments to traceable and regulated systems, officials argue, helps enforce responsible betting limits.

Financial Oversight and Safety First

Rio’s new rules will make oversight significantly easier. Electronic transfers conducted through Pix and other bank-regulated channels can be tracked in real time. That way, authorities can flag suspicious activities quickly. Unlike crypto transactions, which can be anonymous and borderless, these payments provide a clear paper trail.

Industry insiders note that while cryptocurrencies provide speed and convenience, they lack institutional safeguards. The absence of centralized control, regulators say, makes crypto unsuitable for a legally compliant and transparent betting market.

Part of Brazil’s Larger Regulatory Push

Rio de Janeiro’s prohibition is not an isolated case but part of Brazil’s broader effort to shape a responsible, well-regulated betting ecosystem. Once untraceable payment options are eliminated, Brazil is signaling to both domestic and international operators that compliance, transparency, and consumer protection take precedence over convenience.

For bettors, the change means a shift away from digital assets and back toward familiar banking tools. For operators, it sets a clear line: only those willing to work within Brazil’s regulated systems will be allowed to operate in Rio’s market.