In 2023, the Central Bank of Brazil announced a series of regulatory changes that directly impact financial institutions and digital platforms that operate with financial transactions, including the popular Pix instant payments system.
Resolution No. 429, recently published, establishes new requirements for joining and operating in the Pix system, especially for companies that operate with online betting, such as poker platforms. For players who prefer to carry out financial transactions via Pix, these changes aim to ensure greater security.
However, the new regulation also brings new difficulties for online poker companies that need to adapt to BC requirements to continue offering their real money online poker services to Brazilians (Source: https://www.techopedia.com/pt /jogo/brasil/sites-poker-online/dinheiro-real).
What does Resolution No. 429 say?
Resolution No. 429 imposes additional requirements for financial institutions that wish to participate in the Pix system, with the justification of protecting the stability of the National Financial System (SFN) and ensuring safe operation for all users. According to the BC, these new requirements are a response to the increase in operations and the volume of transactions that Pix has generated since its launch in November 2020.
To give you an idea, in September 2023 alone, Pix recorded a record number of transactions with more than 4 billion operations carried out in a single month, according to data from the Central Bank. This growth, however, required adaptation to prevent the system from being used for illicit financial activities.
The new rules of Resolution No. 429 divide the requirements into different deadlines for institutions, according to when they joined the Pix system. For example:
- Until March 2025: Payment companies that joined Pix until December 2022 must file their authorization request with the BC;
- Until December 2025: Those who joined between January 2023 and June 2024 will also need to regularize;
- Until December 2026: Institutions that joined after July 2024 will have a deadline to request authorization.
This gradual regulation allows companies to adapt without interrupting services, but imposes new requirements, such as compliance with the SFN Institutions Accounting Plan and the need for a minimum capital of R$5 million from January 2026 to continue operating .
Impact on online poker platforms
For online poker platforms, the new resolution represents an important challenge. Many of these platforms offer the possibility of playing for real money, which requires a robust financial structure to process payments securely.
With the need to obtain authorization from the Central Bank, poker platforms will have to undergo audits and submit to strict accounting controls. And also demonstrate that they have share capital and assets compatible with the resolution requirements.
It is estimated that the online betting market in Brazil generates around R$12 billion per year, according to the Brazilian Lottery and Sports Betting Association (ABLE). This is a sector that has been growing rapidly, and online poker has a large share.
However, these new requirements may limit the operations of smaller or less structured platforms, as they will need to comply with complex regulatory standards to remain in the market. Companies that do not adapt may have their operations interrupted, leaving the market to platforms that can sustain the high regulatory costs.
Measures necessary to operate in the Brazilian market
To comply with the requirements of Resolution No. 429, online poker platforms operating in Brazil must adopt a series of measures to adapt to the new rules.
Regular accounting reports: Send accounting and financial documentation to the Central Bank, following the guidelines of the Accounting Plan for SFN Institutions (Cosif).
Capital control: Maintain a minimum share capital of R$5 million, which provides more financial stability and ensures that the platform has the capacity to sustain operations with real money.
Constant auditing: Platforms will need to undergo periodic audits, ensuring that transactions carried out are in compliance with security and anti-money laundering regulations.
Customer registration: It will be necessary to send user information to the Customer Registry of the National Financial System (CCS), which facilitates the supervision of financial activities and combats fraud.
Difficulties and benefits for players
The new rules, although they may pose challenges for online poker platforms, bring many benefits to players. Regulation increases the security and transparency of operations, reducing the risk that these platforms are used for illicit activities.
Additionally, compliance with accounting and auditing requirements helps ensure that platforms have the necessary structure to protect user data and transactions. However, adapting platforms to these rules may lead to increases in operating costs, which will possibly be reflected in fees for players.
