Brazil is the largest crypto market in Latin America, receiving an estimated $318 billion in on-chain value between July 2024 and June 2025, about one-third of all crypto value received in the region. A large, relatively young population, a vibrant fintech sector, and persistent demand for dollar-pegged stablecoins as inflation hedges have driven this growth. However, this legitimate boom also attracts illicit actors. According to data from Chainalysis, the same criminal networks that dominate global crypto money laundering—Chinese-language money laundering networks (CMLNs), Russian sanctions evaders, and drug traffickers—have established a significant presence in Brazilian exchanges. These three categories alone account for over 50% of identified illicit inflows to select Brazilian exchanges in 2025. Global illicit crypto volume reached $154 billion in 2025, up from $59 billion in 2024, with stablecoins now the dominant asset. For Brazil, cartel-related money laundering emerged as the largest identified category, reflecting the country's role as a drug transit corridor and destination market. CMLN-linked flows consistently connect Brazilian exchanges to global money laundering infrastructure. Russia-related flows, including sanctioned entities, became more visible in 2024–2025, as traditional financial channels narrowed. A new licensing regime for crypto firms took effect in February 2026, with reporting obligations from May and a licensing deadline in October. These illicit flow patterns will be the first real test for Brazil's Central Bank as supervisor.

Key facts

• Brazil received $318B in crypto on-chain from July 2024 to June 2025.
• Cartel money laundering is the top illicit category in Brazilian exchanges in 2025.
• CMLNs, Russian sanctions evasion, and drug trafficking dominate global illicit flows.
• Global illicit crypto volume hit $154B in 2025, up 161% from 2024.
• Brazil's new crypto licensing regime faces its first major test from these flows.