Brazil has passed a new law allowing authorities to freeze, seize, and liquidate digital assets, including cryptocurrencies, tied to serious crimes. However, President Luiz Inácio Lula da Silva signed the bill, expanding enforcement powers and redirecting seized crypto to public security funding.
According to Law No. 15.358, authorities can now block or confiscate “digital or virtual assets” during criminal investigations. The rule applies when courts find strong evidence linked to organized crime, paramilitary groups, or private militias.
Judges can order precautionary actions such as freezing wallets, blocking exchange accounts, and restricting access to online platforms. The law allows courts to approve early liquidation of seized crypto before final conviction.
Authorities will redirect recovered funds to public security budgets, marking a shift in crypto treatment.
The legislation expands enforcement tools by allowing authorities to suspend access to exchanges, digital wallets, and financial platforms during investigations. Meanwhile, authorities can apply permanent restrictions after conviction.
The law also strengthens international cooperation, allowing Brazil to work with foreign agencies to track and recover digital assets across borders. Officials aim to stop criminal groups from moving funds between jurisdictions.
In addition, the measure creates a national criminal database that links the financial structures of known criminal organizations. The system improves coordination between police, prosecutors, and courts.
The new law comes as Brazil debates broader crypto policies. In August 2025, lawmakers discussed creating a national Bitcoin reserve.
Coinpedia news reported that a revised proposal introduced in February 2026 suggested allowing purchases of up to 1 million BTC, though no decision has been finalized.
Instead of building a reserve, the government chose to redirect seized crypto funds to law enforcement.
Brazil’s crypto adoption continues to rise. Around 17.5% of the population, roughly 16 million people, now own cryptocurrency. Public companies in Brazil hold about 4,328 BTC, valued at nearly $296 million, with additional exposure through ETFs and exchanges.
Meanwhile, Bitcoin is trading near $68,572, down about 2% in the last 24 hours, as markets react to broader macro pressure.
The new law signals that Brazil is moving beyond regulation and toward actively using seized crypto assets within state systems.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Aerodrome Finance has surged more than 10% in the past 24 hours, extending its weekly…
The Solana price continues to hover within a strong resistance and support zone as the…
Falling prices usually send investors running for the exits. But not every investor runs those…
Story Highlights The live price of the Cardano token is . Cardano price could see…
Pi Network is quietly building momentum again. While much of the crypto market remains focused…
Story Highlights The live price of the ENS crypto is . Price predictions for 2026…
