Brazil Upholds Ban on Cryptocurrency Donations to Political Campaigns
Brazilian authorities have upheld a ban on the use of crypto donations to finance election campaigns by political parties and candidates in the country. In a decision published on its website, the state’s electoral court (Tribunal Superior Eleitoral, or TSE for short) wrote that it would “maintain” the existing “ban on the use of donations made in cryptocurrency.”
The TSE’s decision covers the period up to the 2024 municipal elections. The election will be held on October 6 this year. The second round of voting is scheduled for Oct. 27. A blow to the public when Brazil supports a ban on crypto donations.
Brazilians go to the polls in October to vote for mayor, deputy mayor, and local councilors in more than 5,500 communities. The new ruling effectively updates existing laws on financing political campaigns.
The TSE explained its support for the ban, saying its bill was aimed at “ensuring that donations to political campaigns are transparent and properly tracked”. It said the decision was “consistent with” its “statutory audit requirements”.
The electoral regulator said its revised rules would reinforce its “commitment to ensuring the fairness of the electoral process”. It added that it would continue to “protect elections from irregular and illegal practices”. Banks must handle political donations, the regulator says.
The ordinance stipulates that donations of only $200 “must be made exclusively to a fund,” and will be monitored. “All” crypto donations are banned, even donations of less than $200. The TSE first explicitly banned crypto as a method of contribution in December 2019. The legislature urges candidates to abide by the law.
The TSE also directed all candidates to submit expenditure details and provide income in mandatory form financial statements. The group warned that those who did not comply with its rules could face criticism from the prosecutor’s office and its court system.
Conclusion: As Brazil navigates the evolving digital economy and governance landscape, stakeholders will continue to debate the appropriate balance between innovation and regulation. While banning crypto donations may limit certain methods of political funding, it ultimately demonstrates a commitment to maintaining the integrity and legitimacy of the democratic process
