Brazilian Authorities Ban 27 Prediction Market Platforms Including Kalshi and Polymarket

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On April 25, Brazilian authorities took action to ban 27 prediction market platforms, including Kalshi and Polymarket. According to new regulations, contracts related to sports, politics, entertainment, or social activities are prohibited, as authorities believe these contracts are more akin to gambling than financial investment. Only contracts linked to economic indicators such as inflation, interest rates, exchange rates, or commodity prices are allowed and will be subject to financial market regulation. This crackdown stems from Resolution No. 5.298 issued by the Brazilian National Monetary Council (CMN) on Friday, which will take effect in early May and significantly restrict the scope of services offered by prediction market platforms.

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