Brazil Bans Crypto Donations for Election Campaigns

Brazil’s Public Prosecutor’s Office reiterated on Monday that cryptocurrency donations to election campaigns are banned, citing the pseudonymous nature of many crypto transactions that prevents donor identification and hinders oversight.

The office referred to Superior Electoral Court Resolution No. 23,607, issued Dec. 17, 2019, which bars parties and candidates from receiving contributions in virtual currency and requires election authorities to be able to trace every contribution.

Accepted payment methods include bank transfers that record the donor’s CPF, Brazil’s taxpayer ID, and Pix, the country’s instant payment system. “All campaign donations must be identified. They can be made through bank transactions with the donor’s CPF identified. Donations via Pix are also possible. In all cases, the party and the candidate must report and prove the donations received in their campaign finance reports,” the statement said.

The MPF drew a distinction between virtual currency and online crowdfunding. Digital crowdfunding to support campaigns is allowed under the 2017 Election Law reform, but only when donors are identified. The office noted crowdfunding may begin on May 15 of an election year, the date parties and candidates may start raising funds online under current rules.

Electoral authorities require the ability to verify 100% of reported campaign funds, the MPF added. Candidates or parties that cannot prove the origin of resources or that omit required disclosures face administrative fines, must return improperly sourced funds to the federal treasury and could be investigated for abuse of economic power.

The clarification was issued as part of intensified monitoring of campaign fundraising and spending ahead of the general election.