Brazil passes law turning seized crypto into public-security war chest

Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Brazil passes law turning seized crypto into public-security war chest The law lets authorities use crypto seized during investigations and expands their power to freeze, block or seize funds in a bid to crack down on criminal organizations. By Francisco Rodrigues | Edited by Sheldon Reback Mar 26, 2026, 11:56 a.m. Make us preferred on Google (Rafaela Biazi/Unsplash) What to know : A new law allows Brazilian authorities to use cryptocurrency seized from criminal organizations to fund public security efforts, such as police equipment and training. The law enables authorities to provisionally use seized cryptoassets, with a judge's approval, and expands judicial authority to freeze, block or seize cryptoassets during investigations. The legislation also aims to combat organized crime by increasing the penalties for using encrypted messaging apps or privacy tools to conceal activity, and enables international cooperation for asset recovery and intelligence sharing. Brazilian President Luiz Inácio Lula da Silva signed into law a sweeping set of reforms aimed at dismantling organized crime, and cryptocurrencies are at the center of the strategy. Under Law No. 15.358 , enacted March 25, cryptoassets confiscated from criminal organizations can be funneled into Brazil’s public security system. This includes funding for police equipment, intelligence operations and officer training. The law explicitly allows the provisional use of these assets before a final conviction, provided it is approved by a judge. Rather than treating seized cryptocurrencies as a potential reserve of value for the state, an idea floated by some crypto advocates, the government is using it as a tool in the crackdown on groups like the PCC and Comando Vermelho. The decision aligns with Brazil's broader efforts to modernize the justice system's handling of digital property and organized crime. The legislation also significantly expands judicial authority to freeze, block or seize cryptoassets during investigations, including suspending access to exchanges, digital wallets and online platforms. Once convicted, individuals permanently lose access to the formal financial and crypto systems. The law defines the use of encrypted messaging apps or privacy tools to conceal criminal activity as an aggravating factor, increasing potential sentences. It also enables international cooperation for asset recovery and intelligence sharing, and creates a national criminal database integrating financial structures of known criminal groups. Brazil Crime More For You Market structure bill compromise draws wide-ranging reaction from fractured crypto crowd By Nikhilesh De , Jesse Hamilton | Edited by Aoyon Ashraf 12 hours ago The yield agreement, seen as a step toward finally advancing the stalled market structure bill, hasn't yet fully won industry support. What to know : Coinbase and some others in the crypto industry aren't comfortable with the language pitched by lawmakers this week on the stablecoin yield section of the Clarity Act, sources said, but nobody has declared a definitive opposition. An industry call was said to highlight some sharp differences of opinion over how... Read full story Latest Crypto News Coinbase, Fannie Mae bring crypto-backed mortgages to homebuyers 16 minutes ago Everyone's calling bitcoin resilient, may be it's just complacent 40 minutes ago Crypto slides as oil spike, macro jitters trigger derivatives unwind 1 hour ago Bitcoin has traded in a tight range for nearly 50 days – but this is not a "bear flag" 1 hour ago Bitcoin DAT trade is concentrating in Michael Saylor’s Strategy as treasury demand fades elsewhere 2 hours ago Some bitcoin indicators are still going the wrong way, challenging the bullish $70,000 holdout story 5 hours ago Top Stories Market structure bill compromise draws wide-ranging reaction from fractured crypto crowd 12 hours ago U.S. lawmakers dig into tokenizing securities as Trump ties muddy waters 18 hours ago Solana bets on AI agents: Foundation says network is becoming core infrastructure for ‘agentic’ internet 19 hours ago Ethereum Foundation prepares for quantum threat with new cryptography roadmap 20 hours ago Circle selloff may be overdone as crypto bill weakens Coinbase edge, say analysts 20 hours ago