Articles
Crypto Market Analysis

Brazil passes law allowing seized crypto to be used for public security

User Image

Por Anônimo

Criado March 26, 2026|2 mins de leitura
Main Image

Aimed at fighting organized crime groups, the new law allows confiscated assets including crypto to be used for ”police re-equipment, training, and special operations.”

Brazil’s public security agencies have a new weapon for fighting organized crime after national legislators approved a measure allowing them to use confiscated cryptocurrency in their efforts.

On Wednesday, Brazil’s legislative branch published Law No. 15.358, establishing a legal framework for combating organized crime. The law allows authorities to prohibit transactions on crypto exchanges by treating digital assets as instruments in a crime, and confiscate crypto to be used to fund public security.

“For the purposes of forfeiture of assets, any asset that has been used to commit a crime shall be considered an instrument of the crime, even if it was not intended exclusively for that purpose,” said a translation of the law, which included:

Notably, the law would authorize Brazil to coordinate and cooperate with international authorities for investigation and asset recovery, including in cases potentially involving digital assets. With a population of more than 213 million, many of whom use crypto, the legislation could have significant implications for the Brazilian government’s war chest.

Related: Brazil's Pix instant payment system expands to Argentina

The signing of the law followed reports that Brazil’s Finance Minister, Dario Durigan, planned to delay talks on changing the country’s tax policy on crypto. According to reports, Durigan aimed to avoid divisive changes to tax policy, and would push discussions until after Brazil’s presidential election in October.

In 2025, the Brazilian Federal Police’s Operation Lusocoin targeted a laundering and foreign exchange evasion architecture of massive scale, according to TRM Labs. Authorities estimate that the network moved tens of billions of Brazilian reais through a web of shell companies, OTC crypto brokers, and non-custodial wallets.

In contrast to countries like the US, where crypto seized as part of criminal cases could be used to bolster a national digital asset stockpile, Brazil’s law would divert the funds to public security measures like police training. However, Brazil’s government discussed a proposal to create a national Bitcoin (BTC) reserve in August 2025.

The BTC reserve bill, initially introduced in 2024, could allow Brazil to allocate up to 5% of the country’s treasury to purchase Bitcoin. In February, lawmakers reintroduced the legislation, expanding its scope to allow for the purchase of up to one million BTC. It was unclear as of March if the bill would have enough support to pass in the future.

Magazine: Nobody knows if quantum secure cryptography will even work

Source: CoinTelegraph


Outros artigos publicados recentemente

NEAR Intents hit by $3.8 million exploit as crypto's rough year of hacks continues
NEAR Intents hit by $3.8 million exploit as crypto's rough year of hacks continues

Trading Strategies

The popular cross-chain trading system said it will reimburse losses after a bug affected deposits a...

Crypto for Advisors: The CLARITY Act failed, but the rules came anyway
Crypto for Advisors: The CLARITY Act failed, but the rules came anyway

Crypto Market Analysis

Source: CoinDesk...

Stablecoins can drain from banks and nations at lightning speed
Stablecoins can drain from banks and nations at lightning speed

Crypto Market Analysis

Highly liquid and settling 24/7, stablecoins can leave banks and countries at lightning speed. But w...

LATAM stablecoin liquidity may depend on few providers, investor says
LATAM stablecoin liquidity may depend on few providers, investor says

Crypto Market Analysis

Researchers in a Latin American stablecoin ecosystem report warned “fragility in the system is con...

Bitget’s $388M hack pushes Q3 crypto security losses past $1B
Bitget’s $388M hack pushes Q3 crypto security losses past $1B

Crypto Market Analysis

Crypto security losses reached $1.26 billion in Q3 across 247 incidents, with September alone accoun...

NEAR Intents suffers $3.8M exploit after assistance with Bitget breach
NEAR Intents suffers $3.8M exploit after assistance with Bitget breach

Crypto Market Analysis

The platform said it will compensate users affected by the hack, which stemmed from a bug that affec...