Brazil Prohibits Prediction Markets, Eyes Bitcoin Mining Growth
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The ongoing changes in Brazil’s regulatory landscape have resulted in a significant new development: the outright ban on non-financial prediction markets. This decision was made by the National Monetary Council and formally announced on April 24, 2026.
The recent resolution, known as Resolution No. 5,298, prohibits all derivative contracts associated with non-financial events, including sporting events, political situations, and entertainment. However, contracts linked to financial benchmarks such as interest and exchange rates, as well as commodity prices, remain permissible.
The rationale behind this ban appears to stem from concerns raised by Brazil’s gambling regulatory body, which characterized prediction markets as resembling traditional betting systems, stating they replicate the essential elements of fixed-odds wagering.
In a related development, the Hashrate Index has released a report indicating a surge in the potential for Bitcoin mining in Latin America, particularly spotlighting Brazil and Venezuela. The report highlights that Brazil’s hashrate has experienced an impressive year-on-year growth of 133%, enhancing its status as a potential hub for Bitcoin miners.
This increase in activity allows Brazilian miners to engage directly with energy producers, enabling them to negotiate tariffs while avoiding additional fees that typically apply through distributors. Meanwhile, Venezuela, with its current capacity of 5 EH/s, is also suggested to have significant untapped potential.
Moreover, Itau, Brazil’s largest banking institution, is making strides into the Bitcoin mining sphere by investing in innovative projects. The bank’s venture arm, Itau Ventures, has reportedly invested up to $10 million in Minter. This company is focusing on addressing the challenges of excess energy produced in green energy installations by utilizing mobile mining solutions.
Minter’s approach allows energy producers to harness otherwise wasted energy, aligning with sustainable practices while supporting the growing Bitcoin mining industry in Brazil. These developments could potentially reshape the landscape for cryptocurrency activities in the region.
As Brazil continues to navigate its regulatory framework on both prediction markets and cryptocurrency mining, the future landscape of these sectors remains a focal point for stakeholders in Latin America.
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