Home NewsTechnology Brazil’s payment regulations ban credit cards and crypto

Brazil’s payment regulations ban credit cards and crypto

82 views 3 minutes read

Under the new rules for Brazil’s sports betting and igaming market, operators will no longer be able to accept payments made by credit cards or cryptocurrency.

Today (18 April), the Ministry of Finance and the Secretariat for Prizes and Betting (SPA) published the new regulations in the Official Diary of the Union. The new rules were published in the Official Diary of the Union today (18 April).

The first of four stages of regulation implementation announced last week by the Ministry of Finance is aligned with this. It refers to the implementation of Bill 3626, also known as Law 14790. This was ratified in December 2023 by President Luiz-Inacio Lula Da Silva. The first phase will last until April 30th and include the publication of payment, security and technical regulations.

These rules include a list of requirements that operators and bettors must meet in order to participate on the Brazilian online gambling and sports betting markets.

The law prohibits the use of cash, credit cards, cryptocurrency or payment slips.

Only electronic transfers between the accounts of operators and players can be used to place bets, withdraw money and pay out winnings. Central Bank of Brazil must approve all accounts.

The operators must not accept payment from a betting account that is not associated with the betor, or third-party transfers.

It is also prohibited to act as an intermediary for players or operators. Institutions authorised by Central Bank of Brazil may offer transactions accounts for operators in certain situations, such as to enable bettors receive their prize money.

Winners of bets will receive their winnings in 120 minutes.

Make players conscious of their gambling habits

The operators must provide the players with an account that contains certain information about their gambling habits. The aim is to allow players better control their betting and financial information.

Virtual accounts display the betting history of the player over the past 36 months. They also show the value and total amount of bets placed, as well as their balance. The operators are prohibited from paying out remuneration to any player-owned account.

Operators will also be responsible for managing the liquidity risk. This will include establishing a financial reserve at a minimum amount of R$5m (PS765,915/EUR895,350/$953,597). Reserves must be kept in a bank authorized by the Central Bank of Brazil as federal government bonds. The reserve is held separate from other accounts.

New rules come into effect today.

Brazil’s regulatory market is heating up

Brazil is moving to regulate the igaming market and its sports betting.

Next, the SPA will publish their fraud policies. The rules will include anti-money laundering, counter-terrorist funding and rules regarding proliferation of weapons.

During the third stage, SPA is going to publish the procedures on how gambling advertisements are monitored and also technical and security standards for igaming. In the fourth stage, SPA will publish procedures on how to allocate industry contributions for socially responsible causes. The final phase will conclude at the end July.

You may also like

About Us

On iGamingWorld, we provide in-depth analysis, the latest news and opinions from famous people of the gaming industry.

Featured Posts