The Brazilian telecommunications regulator, Anatel, has blocked 27 prediction market platforms, including Polymarket and Kalshi, for violating betting legislation, according to Reuters.
Simultaneously, the National Monetary Council (CMN) passed resolution 5.298 during its session on April 23, which will come into effect on May 4. This document prohibits the offering and trading of derivatives on sporting events, online casino game outcomes, as well as political, electoral, social, cultural, and entertainment events within the country.
The ban also extends to foreign derivatives offered in Brazil. The Securities Commission (CVM) will determine how this ban will be applied to these foreign products.
However, contracts related to economic and financial indicators (such as price indices, securities, interest rates, currency exchange rates, and commodity quotes) are exempt from this ban, as their approval falls under the jurisdiction of the CVM. According to Regis Dudena, the Secretary for Economic Reforms at the Ministry of Finance, prediction market platforms had positioned themselves as financial products through derivative trading, but in reality, they operated as bookmakers.