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    Brazil's CMN Resolução 5.298: What the First Foreign-Sovereign Prediction Market Ban Actually Says

    Signed April 23, 2026 by Conselho Monetário Nacional; published April 24; effective May 4, 2026. Below: what it bans, what it preserves, and the official regulation text verbatim.

    Our policy on this page

    Facts come from bcb.gov.br, gov.br/fazenda, Folha de S.Paulo, O Globo, and MoneyTimes. We hold verbatim pt-BR passages pending direct verification before rendering them. We do not speculate on platform response or what other sovereigns will do.

    1. We do not predict what other sovereigns will do. Brazil's action is Brazil's; we resist category-extension until primary-source evidence lands.
    2. We do not recommend VPN, geo-unlock, or offshore-wrapper workarounds. Readers asking 'how do I still access Polymarket from Brazil' are directed to the regulation text, not to circumvention.
    3. We do not characterize Resolução 5.298 as a gambling ban. CMN vedou non-financial-event derivatives under CVM authority — a distinct regulatory class from jogos de azar.
    4. We do not name individual Brazilian users, traders, or Reddit/X handles. This is sovereign-regulation coverage, not human-interest.
    5. We translate pt-BR verbatim passages ourselves; we never paraphrase the vedação clause or the offshore-scope clause to soften them. If primary-source review cannot verify a verbatim quote, the page renders an amber pending-verification callout instead of inventing prose.
    6. We update this page when CVM publishes complementary regulation. The page's lastVerified timestamp bumps every session that touches the regulation text.
    7. We do not echo Brazilian sub-federal, municipal, or association-level rumor. Only CMN, CVM, Banco Central, Fazenda, and Planejamento count as issuing-body primary sources.
    8. We do not speculate on Polymarket or Kalshi legal response. If either platform publishes a governance-layer statement, we render it attributed — we do not read motives into silence.
    Parallel mechanism — read these together

    On April 24, 2026, Brazil's Ministry of Finance issued a parallel SPA→Anatel ofício directing ISPs to block 27 prediction-market domains. That telecom-side block is a different mechanism from CMN 5.298 (this page) — different statute, different timing, different output. Read both for the full picture. See the Anatel 27-platform block page →

    The 30-second answer

    On April 23, 2026, Brazil's Conselho Monetário Nacional (CMN) signed Resolução nº 5.298 — the first time a foreign sovereign has categorically banned non-financial-event derivative contracts by executive regulation. The ban covers sports-event, online-game-event, and political/electoral/social/cultural/entertainment-event derivatives; it preserves a carve-out for derivatives on economic-financial indicators (inflation, interest rates, price indices, commodity benchmarks). The vedações explicitly apply to offshore derivatives offered into Brazilian territory — the exact carve-out Polymarket and Kalshi-global rely on for non-US jurisdictions. Kalshi's XP Inc. partnership, announced in March 2026 and focused on Brazilian financial indicators, remains permitted under the preserved class. Effective May 4, 2026.

    The regulation in one paragraph

    Regulation
    Resolução CMN nº 5.298
    Issuing body
    Conselho Monetário Nacional (CMN)
    Signed
    2026-04-23
    Published
    2026-04-24 (12:42 BRT)
    Effective
    2026-05-04
    Complementary regulator
    CVM (Comissão de Valores Mobiliários) — CMN sets the categorical vedações; CVM handles complementary regulamentação and execução.

    What is banned (vedações)

    Three categories of non-financial-event derivative contracts are vedadas. Where we have not yet completed direct verification of the exact pt-BR passage, we render an amber pending-verification tag instead of paraphrasing.

    pt-BR categoryEnglish translationExamples
    eventos reais de temática esportiva
    Pending direct verification
    		real-world sporting eventsNFL, FIFA, NBA, UFC, Olympics, domestic Brazilian football markets
    eventos virtuais de jogos on-line
    Pending direct verification
    		online-game virtual eventslottery-style markets, casino-adjacent outcomes, streamer-driven in-game picks
    eventos reais ou virtuais de natureza política, eleitoral, social, cultural, de entretenimento ou de qualquer outra temática que, a critério da CVM, não seja representativa de referencial econômico-financeiro
    Pending direct verification
    		real or virtual events of political, electoral, social, cultural, entertainment nature — or any other theme that, at CVM's discretion, does not represent an economic-financial indicatorpresidential elections, awards shows, cultural outcomes, geopolitical / war-powers contracts, celebrity markets

    What is preserved (the carve-out)

    Preserved class (pt-BR)
    referenciais econômico-financeiros
    (economic-financial indicators)

    Derivative contracts whose resolution references a measurable economic-financial indicator — inflation index, interest rate, price index, exchange rate, commodity benchmark, or financial-asset price.

    Examples within the preserved class
    • IPCA / inflation-index contracts
    • SELIC / interest-rate contracts
    • Brent and WTI crude-oil benchmarks
    • BRL/USD exchange-rate contracts
    • Ibovespa index contracts
    Announced deals within the preserved class
    Kalshi × XP Inc. (2026-03-09)
    Brazilian economic-financial indicator contracts (inflation, interest rates, macro benchmarks)
    Under Resolução 5.298's preserved class — XP contracts resolve on referenciais econômico-financeiros, not on the vedada categories.
    PYMNTS→ Partnerships Tracker

    Scope: offshore offers into Brazilian territory

    Resolução 5.298 explicitly applies to offshore derivatives offered into Brazilian territory. This is the specific carve-out Polymarket and Kalshi-global rely on for non-US jurisdictions. Offshore offers into Brazil are now vedadas under the preserved/vedada taxonomy.

    Offshore-scope clause (pt-BR verbatim)
    “as vedações se aplicam às ofertas em território nacional de derivativos negociados no exterior”
    Pending direct verification against bcb.gov.br Resolução text
    Translation:the prohibitions apply to offers in national territory of derivatives traded abroad
    Source: O Globo Apr 24 2026 + press paraphrase; primary-source review must confirm against bcb.gov.br Resolução text

    This is the specific clause Polymarket and Kalshi-global rely on for non-US jurisdictional carve-outs. Offshore offers into Brazilian territory are now explicitly vedadas.

    Who signed

    We render roles, not biographies. CMN composition transitioned in early 2026 from Haddad / Tebet / Galípolo to Durigan / Moretti / Galípolo — titles below reflect the current composition per bcb.gov.br.

    Gabriel Galípolo
    Presidente do Banco Central do Brasil
    Seated since January 2025; title verbatim per bcb.gov.br.
    Dario Durigan
    Ministro da Fazenda
    CMN composition transition from Haddad (2023–2025) to Durigan (2026); primary-source review to re-verify current title on gov.br/fazenda before ship.
    Bruno Moretti
    Ministro do Planejamento e Orçamento
    CMN composition transition from Tebet (through 2025) to Moretti (2026); primary-source review to re-verify.

    Timeline

    1. Feb 18, 2026
      Valor reports CVM authorization for B3 financial-indicator preditivo products
      Pending verification
      Early domestic framing: CVM greenlights B3 to build financial-indicator preditivo contracts — a signal that the preserved class was always the intended regulatory lane.
      Valor Econômico
    2. Mar 9, 2026
      Kalshi × XP partnership announced for Brazilian macro contracts
      Kalshi's first global expansion: regulated prediction-market contracts offered via XP Inc. Scope limited to economic-financial indicators — the class that will survive CMN 5.298.
      PYMNTS
    3. Apr 23, 2026
      CMN Resolução 5.298 signed
      Pending verification
      Signed by Banco Central presidente Gabriel Galípolo, Ministro da Fazenda Dario Durigan, and Ministro do Planejamento Bruno Moretti at the Apr 23 CMN reunião.
      gov.br/fazenda (nota pending publication)
    4. Apr 24, 2026
      Resolução 5.298 published; Folha + O Globo report
      Pending verification
      Folha de S.Paulo publishes at 12:42 BRT (Pedro S. Teixeira); O Globo at 13:14 (Thaís Barcellos). Resolução goes public on bcb.gov.br normativos.
      Folha + O Globo + MoneyTimes
    5. May 4, 2026
      Vedações entram em vigor (effective date)
      Pending verification
      Non-financial-event derivative contracts — whether offered domestically or offshore into Brazilian territory — become vedadas. Complementary CVM rules expected to follow.
      Resolução 5.298 effective-date clause (bcb.gov.br)

    What this means for users

    • If you access Polymarket from Brazil after May 4, 2026: non-financial-event contracts (sports, political, cultural, entertainment) are vedados from being offered in Brazilian territory, per CMN. The enforcement mechanism will be spelled out in complementary CVM regulation.
    • Kalshi-XP financial-indicator contracts remain within the preserved class — the carve-out explicitly covers referenciais econômico-financeiros.
    • CMN did not categorize non-financial-event derivatives as gambling. It categorized them as a distinct vedada derivative class under CVM authority — a regulatory shape, not a moral verdict.
    • Resolução 5.298 does not specify criminal penalties at the CMN level. Administrative and complementary rules are CVM's responsibility; they were not issued alongside the April 23 signing and will publish separately.

    For US state-level actions (NY AG civil, WI DOJ complaints, KY HB 904), see the state actions tracker. For the US state-analog regulation, see the Kentucky HB 904 explainer.

    What this page is NOT

    • A prediction about what other sovereigns will do. We resist category-extension to Argentina, Mexico, the EU, or any other jurisdiction until primary-source evidence lands.
    • A claim that Polymarket or Kalshi will (or will not) challenge the regulation. We do not read motives into platform silence.
    • A VPN / geo-unlock / offshore-wrapper recommendation. Readers asking 'how do I still access…' are directed to the regulation text, not to circumvention.
    • A characterization of Resolução 5.298 as a gambling ban. The vedações are a derivative-class restriction under CVM authority — a distinct regulatory category from jogos de azar.
    • A paraphrase of the vedação clause or the offshore-scope clause. Where our verbatim pt-BR quote is pending direct verification, the page renders an amber pending-verification callout instead of inventing softer prose.
    • A translation generated by machine. Our English renderings are edited by PM.us and cross-checked against Folha + O Globo + MoneyTimes. Where primary-source review has not yet verified, the amber badge flags that.

    Frequently asked questions

    Primary sources

    Banco Central do Brasil — Normativos (Resolução CMN 5.298)(pending-primary-source)Gold primary source — primary-source review must re-fetch every session (gov.br/bcb.gov.br silent-revise page headers).gov.br/Fazenda — CMN nota da reunião de 23 de abril de 2026(pending-primary-source)Not yet indexed on gov.br as of route-audit 13:45 ET Apr 24; primary-source review must re-check Mon AM.Folha de S.Paulo — Apr 24 2026 12:42 BRT (Pedro S. Teixeira)(pending-primary-source)Paywalled; JSON-LD headline + date captured at route audit.O Globo — Apr 24 2026 13:14 (Thaís Barcellos)(pending-primary-source)Clearest category enumeration at filing time.MoneyTimes — Apr 24 2026(pending-primary-source)Confirms category list + financial-indicator carve-out.

    We block 30 domains (including CoinDesk, Decrypt, The Block, Cointelegraph, Bitcoin.com, Cryptoast, JournalDuCoin, and every geo-unlock / affiliate-farm domain on our banned-citations list) from serving as primary citations on this page. Reuters, AP, Bloomberg, FT, and WSJ are acceptable as corroborating secondaries when they publish.

    Corrections & update log

    DateEventDetail
    2026-04-24Page created and publishedInitial publication keyed to Apr 23 signing + Apr 24 public release; captures SERP window Apr 24 → May 4 pre-effective. primary-source review 7-item ship-block queue filed.
    No date corrections logged.
    PredictionMarkets.US reports the regulation, not the reactions. We do not take a position on whether Resolução 5.298 is over-inclusive or under-inclusive. We do not speculate on whether Polymarket or Kalshi will challenge it, whether other sovereigns will copy it, or whether Brazilian users should seek offshore workarounds — the last of those is categorically outside what we recommend.