A candidate in the 2024 council elections in Minas Gerais, Brazil, has been summoned by the Regional Court to declare his Bitcoin before running for office. Local media outlet Livecoins first reported the news, saying the candidate bought BTC in 2024.
According to the report, the Regional Court of Minas Gerais sent a subpoena to the unnamed candidate on March 5, giving him three days to respond. The candidate had contested for the post of councillor in the Perdoes municipality during the October 6, 2024, elections.
The summons was based on a preliminary report from an electoral accounts examiner, who discovered that the candidate not only concealed that he bought BTC but also gave inaccurate information on his campaign expenses. The candidate will now have to explain his reasons.
The summons read:
“In view of this preliminary analysis, the account provider will be notified to express/justify, within 03 (three) days, the possible irregularities/improprieties pointed out above.”
Under Brazilian laws, candidates must declare their assets when running for office. While these rules have only applied to traditional assets, they now extend to cryptocurrencies. Brazilian electoral court also prohibits candidates from accepting crypto donations.
Though the court is actively pursuing the case, there are no details yet on how the BTC assets came to the court’s attention or how much the candidate and his associates have. However, it noted that the BTC acquisition took place in August 2024, and the court most probably learned this information from crypto exchanges and banking institutions providing crypto trading in the state.
If found guilty, the candidate could face serious sanctions. Previous cases in which political candidates were found guilty of hiding assets have attracted fines or the return of assets to the government. In more serious cases, candidates could be banned from contesting for public offices, or where the candidate is serving, conviction could result in an order to step down.
Crypto adoption grows in Brazil
Meanwhile, the electoral case highlights the growth of crypto adoption in Brazil and political candidates’ recognition of digital assets in financial disclosures. Over the past few years, Brazil has become one of the top 10 countries globally in terms of crypto adoption.
According to a recent Yougov poll, almost 15% of Brazilians would prefer using crypto instead of banks, showing a growing acceptance of digital assets in the Latin American country. However, around 40% of respondents to the same poll consider crypto not to be trustworthy.
Further signs of that adoption have emerged recently, with the Cardano Foundation partnering with software company Serviço Federal de Processamento de Dados (SERPRO). SERPO is a leading technology partner with the Brazilian government, as it powers more than 90% of the federal government’s digital solutions.
With the partnership, Cardano Academy will become available to the 8,000 SERPO employees, while the two entities focus on blockchain education and the integration of the technology into public sector infrastructure. Cardano partnered with Brazil-owned oil company Petrobras in 2023.
Crypto adoption in Brazil is not just happening on the governmental level. Several companies in the country, including traditional and neo-banks, already support crypto transactions. Brazil’s fintech Meliuz recently adopted a Bitcoin reserve and bought 45.72 BTC for $4.1 million.
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