B3 Introduces Regulated Event Contracts Following Brazil’s Ban on Prediction Markets

(AsiaGameHub) –   Brazil has established a clear distinction for prediction-style trading, creating two separate categories. Contracts based on financial events are permitted to continue, whereas those linked to sports, politics, games, culture, entertainment, or social results are now excluded from the authorized derivatives market.

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Good to Know

• B3 has introduced six Event Contracts connected to the Ibovespa index, the Brazilian real, and bitcoin.
• Every contract has a maximum value of 100 Brazilian reais, approximately $19, and is settled exclusively in cash.
• Access remains restricted to professional investors possessing at least 10 million reais in assets or a technical certification from the CVM.

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B3 Lands On The Approved Side Of Brazil Rules

B3 has rolled out six Event Contracts in Brazil, offering professional traders a regulated avenue for speculating on short-term results associated with financial markets. These contracts monitor spot and mini futures trading for the Ibovespa index, the Brazilian real, and bitcoin.

The structure is comparable. Prediction market operators Kalshi and Polymarket employ a similar mechanism, but B3 has developed its offering within Brazil’s regulated securities environment. The contracts received approval from the Comissão de Valores Mobiliários (CVM), and access is limited to accredited professional investors.

The timing of the launch is significant. On April 24, the Conselho Monetário Nacional (CMN) issued Resolution CMN nº 5,298, which prohibits derivatives tied to actual sports events, online games, politics, elections, social issues, cultural happenings, and entertainment. Derivatives based on financial and economic indicators are still allowed. This regulation becomes effective on May 4, with the CVM responsible for enforcement and further regulatory details.

Authorities have also taken action against offshore platforms. Finance Minister Dario Durigan and Civil House Minister Miriam Belchior stated that ANATEL has already restricted 28 unlicensed prediction market platforms. Régis Dudena, head of the Secretariat of Prizes and Bets, indicated that additional blocks would be implemented against platforms operating outside the legal framework.

Licensed betting operators in Brazil have endorsed the new rule. The Instituto Brasileiro de Jogo Responsável commented that the action helps curb “regulatory arbitrage” by foreign platforms attempting to function as financial products rather than licensed gambling entities.

B3 is already a central player in the Brazilian financial market. Formed in 2017 by the merger of BM&FBovespa and Cetip, the exchange operates the largest financial market infrastructure in Latin America. It also introduced Bitcoin futures in April 2024, in addition to its existing products for equities, currencies, commodities, and interest rates.

According to Luiz Masagão, Executive Vice President of Products and Clients at B3, these contracts are part of a broader strategy to modernize Brazil’s derivatives market. B3 has also explored products related to central bank decisions in other nations.

The exchange has further ambitions in the digital asset space. A Bloomberg report from earlier in April indicated that B3 plans to introduce a tokenization platform and a stablecoin by the end of the year.

Kalshi expanded into Brazil in January via a collaboration with XP International, but the country has since tightened regulations for foreign platforms. With Polymarket, Kalshi, and 26 other platforms now blocked at the network level, B3 is entering a less crowded domestic market for regulated financial event contracts.