Brazil has continued to ban the use of cryptocurrency donations for funding political parties and candidates’ electoral campaigns. The nation’s electoral court, Tribunal Superior Eleitoral (TSE), announced on its website that it would “maintain” an existing “ban on the use of donations made in cryptocurrency.”
The ruling is effective until the 2024 municipal elections.
This decision updates the rules surrounding political campaign funding. The TSE stated, “The payment of electoral expenses with virtual currencies and pre-paid cards managed by third parties is prohibited.”
The regulator also asks candidates to provide detailed financial statements of their expenses and donations. The TSE warned that it would not “tolerate any non-compliance” and candidates could face prosecution if they fail to commit the ruling.
Meanwhile, Brazil’s largest neobank, Nubank, recently announced it would allow Bitcoin and Ethereum withdrawals from its banking app, highlighting the country’s increasing crypto adoption despite regulatory challenges in political finance.
