Brazil’s Maturing Market Meets Maturing Threats: How Global Crypto Crime Trends Are Landing in Latin America’s Largest Market

Chainalysis finds that Brazil — one of LATAM’s largest crypto markets — has seen substantial illicit crypto inflows through local exchanges, driven primarily by Chinese-language money laundering networks (CMLNs), sanctions evasion, and drug-cartel laundering. Illicit on-chain value reached $154 billion in 2025 globally with stablecoins dominant, and in Brazil these three threat categories account for over 50% of identified illicit inflows to select exchanges; furthermore, a small number of deposit addresses concentrate roughly 75–90% (about 80% as of March 2026) of illicit volume. These patterns coincide with new BCB regulatory requirements (Resolutions 519–521) and near-term reporting/licensing deadlines, creating both a critical test and an opportunity for targeted AML/CFT intervention.