Brazil advances new regulations for Big Tech platforms and fintechs

The Brazilian Congress is debating new rules aimed at tightening responsibility for large digital platforms after President Luiz Inácio Lula da Silva signed decrees in May that amend the country's Marco Civil da Internet. The measures require Big Techs to remove illicit content upon notification without a court order, prompting fierce opposition that has filed at least 25 proposals to repeal the decrees. The Supreme Court will soon rule on challenges to the new rules, while lawmakers are also working on a separate AI‑related bill, with the Chamber president Hugo Motta asking rapporteur Aguinaldo Ribeiro for a report within weeks.

Separately, investigations have linked the deregulation of Brazil's fintech sector under former President Jair Bolsonaro, Economy Minister Paulo Guedes and Central Bank chief Roberto Campos Neto to extensive money‑laundering by criminal groups such as the PCC and Comando Vermelho. The 2018 resolution that created direct credit societies and expanded open‑banking and Banking‑as‑a‑Service platforms is blamed for creating “parallel corridors” for billions of reais in illicit funds. Recent Federal Police and Public Ministry operations uncovered around R$ 26 billion moved through these fintech channels, prompting later tightening of anti‑money‑laundering rules under the current administration.