Brazil's Public Prosecutor's Office (MPF) reaffirmed on Monday a ban on cryptocurrency political donations as the country's general elections approach. The office issued an article explaining that all campaign donations must be identified through bank transactions or Pix (Brazil's instant payment system) with the donor's CPF (Brazilian taxpayer ID number) verified. The ban was originally established by the Superior Electoral Court in Resolution No. 23,607 on December 17, 2019, which excluded candidates and political parties from receiving financial donations in virtual currency. The MPF stated that cryptocurrency donations are prohibited because the pseudonymous character of these transactions makes it difficult to verify the origin of funds, a requirement for election campaign oversight in Brazil.
MPF Enforces Mandatory Pix and Bank Transfer Requirements for Campaign Donations
The MPF specified that all campaign donations must be made through bank transactions with the donor's CPF identified or via Pix. The office stated: "All campaign donations must be identified. They can be made through bank transactions with the donor's CPF (Brazilian taxpayer ID number) identified. Donations via Pix (Brazilian instant payment system) are also possible. In all cases, the party and the candidate must report and prove the donations received in their campaign finance reports."
Candidates failing to prove the origin of their campaign funds or to disclose any donations face fines and must return these funds to the treasury. They also face accountability on abuse of economic power charges.
Brazil Permits Digital Crowdfunding from May 15th with Donor ID Logging
The MPF differentiated virtual currency from virtual crowdfunding. The office stated that raising money online to finance political campaigns is permitted as long as donors are identified accordingly. This type of funding has been approved since 2017, when the Election Law was reformed, and is permitted starting May 15th of each election year. Political campaigns must log all donor IDs for digital crowdfunding contributions.
FAQ
What did Brazil's MPF reaffirm on Monday regarding election donations?
Brazil's Public Prosecutor's Office (MPF) reaffirmed on Monday a ban on cryptocurrency political donations. The office issued an article explaining that all campaign donations must be identified through bank transactions or Pix with the donor's CPF verified.
Why does Brazil prohibit cryptocurrency donations to political campaigns?
Brazil prohibits cryptocurrency donations because the pseudonymous character of these transactions makes it difficult to verify the origin of funds. Oversight bodies need to verify the origin of funds corresponding to each donation, a requirement established by the Superior Electoral Court in Resolution No. 23,607 on December 17, 2019.
When can political campaigns in Brazil start accepting digital crowdfunding donations?
Brazil permits digital crowdfunding for political campaigns starting May 15th of each election year. This type of funding has been approved since 2017, when the Election Law was reformed, and requires all donors to be identified accordingly.
