The legal foundation for the shutdown is Resolution 5.298, issued by Brazil's National Monetary Council on Friday and taking effect in early May. Under the new rules, contracts tied to sports, politics, entertainment, or social events are banned outright, as authorities classify them as closer to gambling than legitimate financial activity. Only contracts linked to economic indicators — such as inflation rates, interest rates, exchange rates, or commodity prices — will be permitted and regulated under the financial market framework. Durigan also framed the ban as a consumer protection measure, arguing that prediction markets risk deepening household debt at a time when Brazil is actively working to reduce financial burdens on families, small businesses, and students.