Brazil absorbed $318 billion in on-chain crypto value between July 2024 and June 2025, according to data from Chainalysis, making the country the dominant market in Latin America. That sum represents roughly one-third of all cryptocurrency transaction value across the region during the period. But the numbers also come with a darker side: the analysis flags cartel-linked money laundering, Chinese-language laundering networks, and sanctions evasion risks as persistent threats.
What the Chainalysis data shows
Chainalysis didn't just tally the total flows. The firm broke out a specific concern: Chinese-language money laundering networks, or CMLNs, accounted for about 20% of the entire on-chain illicit laundering ecosystem in Brazil. That’s a significant slice. Cartel-linked operations and sanctions evasion also feature prominently in the report, though exact percentages for those categories weren't given.
The $318 billion figure covers all on-chain value moved through Brazilian entities, not just illicit activity. But the concentration of criminal financial infrastructure is hard to ignore. Brazil's size and relatively developed crypto market make it a natural hub — and a target.
New authorization regime kicks in
Brazil's government didn't wait for the report to act. A new authorization regime for crypto service providers took effect in 2026. It requires exchanges, custodians, and other covered firms to register and meet compliance standards. Later this year, additional reporting requirements go live, though the exact date hasn't been widely publicized.
The regime gives regulators a clearer window into who's operating and what they're moving. That matters when a fifth of illicit laundering flows run through CMLN channels. Whether the new rules will actually disrupt those networks is the open question — enforcement will determine that.
The timing and the stakes
Chainalysis's data period ended in June 2025, before the new authorization rules were fully in effect. So the $318 billion figure is a pre-regulation baseline. The real test is whether the 2026 regime can shrink the illicit share without choking off legitimate activity. Brazil's market is too big to ignore, and the cartels and CMLN operators aren't going anywhere on their own.
Regulators will have to show they can keep up with a laundering ecosystem that's already adapted to digital assets. The reporting requirements due later this year are the next concrete milestone. If they produce actionable intelligence, the landscape could shift. If they don't, the $318 billion figure might just be the starting point.
