Brazil, Latin America's largest crypto market, received approximately $318 billion in on-chain value between July 2024 and June 2025, representing about one-third of the region's total. However, this growth has attracted significant illicit activity. According to Chainalysis data, global illicit crypto inflows reached $154 billion in 2025, up from $59 billion in 2024, driven by Chinese-language money laundering networks (CMLNs), sanctions evasion, and drug trafficking. These three categories account for over 50% of identified illicit inflows to select Brazilian exchanges in 2025. Cartel-related money laundering, particularly tied to Brazilian organized crime groups like PCC and Comando Vermelho, has become the largest single category of illicit inflows. CMLN-linked flows connect Brazilian exchanges to global money laundering infrastructure, while Russia-related flows, including sanctioned entities, have increased in 2024-2025. A new regulatory regime for crypto firms took effect in February 2026, with licensing deadlines in October 2026, testing the ability of Brazil's central bank and exchanges to detect and disrupt these threats.

Key facts

• Brazil received $318B in crypto (July 2024–June 2025), one-third of Latin America's total.
• Global illicit crypto inflows hit $154B in 2025, up from $59B in 2024.
• CMLNs, sanctions evasion, and drug trafficking drive over 50% of illicit inflows to Brazilian exchanges.
• Cartel-related money laundering is the largest single illicit category in Brazil.
• New Brazilian crypto regulations took effect Feb 2026, with licensing deadline Oct 2026.