Brazil Legalizes Cryptocurrencies For Gambling To Improve Transparency

Brazil legalizes bitcoin transactions and digital money for gambling. (Photo; Doc. Digital Coin Price)

JAKARTA - Brazil marks a new era in its gambling industry by legalizing the use of cryptocurrencies and other electronic payment methods for gambling activities. This innovative move, which is part of local regulatory reforms, aims to modernize the gambling sector and increase transparency.

According to the new rules set by the Ministry of Finance and the Prize and Gambling Secretariat (SPA), gambling operators in Brazil are required to accept electronic transactions as the only form of payment for betting. As reported by Bitcoin.com, this signifies a significant shift from traditional methods such as cash and checks, paving the way for a more secure and efficient era of digital gambling.

Pix, Brazil's popular interbank system, is one of the payment methods received under the new regulations. Standard electronic transactions and debit/prepaid cards are also included in the approved list.

An important step to eliminating the use of cash, bank slips, checks, and credit cards in gambling transactions aims to increase transparency and combat money laundering. Cryptocurrencies, although popular among investors, are banned as a means of payment for betting in Brazil.

In addition, this new regulation requires direct transactions between gamblers and operators, eliminating intermediaries who were previously involved in the gambling process. This is expected to increase efficiency and reduce the potential for fraud.

This regulatory change is an important step in modernizing Brazil's gambling sector, a process that begins in 2022 with the approval of a gambling law signed by President Luis Inacio "Lula" Da Silva in January.