Brazil has recently passed a landmark law allowing authorities to use cryptocurrency seized during investigations to strengthen public security operations.
Signed by President Luiz Inácio Lula da Silva on March 25, Law No. 15.358 empowers law enforcement agencies to utilize confiscated cryptoassets to cover expenses such as police equipment, officer training, and intelligence operations aimed at dismantling organized crime networks.
Under this legislation, cryptocurrencies confiscated from criminal organizations can be provisionally allocated to Brazil’s public security system even before a final conviction, provided a judge approves the use. This approach ensures that digital assets become an immediate tool in combating crime rather than just remaining a potential state reserve.
The law expands judicial authority significantly, allowing courts to freeze, block, or seize cryptoassets during ongoing investigations. Judges can suspend access to digital wallets, cryptocurrency exchanges and online platforms used by suspects. Once convicted, individuals permanently lose access to both formal financial and crypto systems.
These measures are designed to prevent criminal organizations from continuing to exploit digital financial tools while under investigation.
Instead of treating seized cryptocurrencies as a potential reserve of value, the government is directing them toward active law enforcement operations. This move is part of a broader strategy to modernize Brazil’s justice system in handling digital assets and organized crime.
Criminal groups such as the Primeiro Comando da Capital (PCC) and Comando Vermelho are among the primary targets of these measures, which aim to dismantle their financial networks and operational capabilities.
Law No. 15.358 also considers the use of encrypted messaging apps or privacy tools to conceal criminal activity as an aggravating factor, increasing potential sentences for offenders. By criminalizing such practices, the legislation discourages the use of technology to evade law enforcement and reinforces accountability for digital conduct.
International cooperation is another critical aspect of the law. It facilitates asset recovery and intelligence sharing between Brazil and other countries, helping to track and reclaim illicit funds moved across borders.
Additionally, a national criminal database is being created, integrating the financial structures of organized crime groups. This database will enable better coordination across government agencies and streamline investigations into criminal networks.
Brazil has one of the largest cryptocurrency user bases in the world, with millions of residents using digital assets regularly. In 2025, Operation Lusocoin, led by the Brazilian Federal Police, dismantled a money-laundering network that had moved tens of billions of Brazilian reais through shell companies, OTC crypto brokers, and non-custodial wallets, highlighting the growing importance of regulating crypto in crime prevention.
While some crypto advocates had suggested using seized assets to create a national Bitcoin reserve, the government opted to prioritize law enforcement needs. Discussions about a national Bitcoin reserve surfaced in August 2025, and a related bill reintroduced in February 2026 proposed purchasing up to 1 million Bitcoins. However, the proposal’s future remains uncertain.
Meanwhile, Brazil’s Finance Minister Dario Durigan has indicated that changes to the country’s crypto tax policy will be postponed until after the presidential election in October, aiming to avoid controversial policy shifts ahead of the vote.
Law No. 15.358 marks a significant step in Brazil’s efforts to combat organized crime using modern financial and technological tools. By channeling seized cryptocurrencies into public security, expanding judicial powers and fostering international cooperation, Brazil is establishing a framework that could serve as a model for other nations facing challenges posed by digital assets in criminal activities.
