Brazil Approves Law Using Seized Crypto for Public Security Funding

Brazil has passed a new law allowing authorities to use crypto seized from criminal organizations to fund public security initiatives, including police equipment, intelligence operations, and officer training.

Law Expands Judicial Authority Over Crypto

Signed by President Luiz Inácio Lula da Silva, Law No. 15.358 grants judges the power to provisionally use seized cryptoassets even before a final conviction. The legislation also expands authority to freeze, block, or seize cryptoassets during investigations, including access to digital wallets, exchanges, and online platforms. Convicted individuals permanently lose access to both crypto and formal financial systems.

Combating Organized Crime with Digital Assets

The law targets organized crime groups such as PCC and Comando Vermelho, and strengthens penalties for using encrypted messaging apps or privacy tools to conceal illicit activity. It also allows international cooperation for asset recovery and intelligence sharing.

The legislation integrates a national criminal database that links the financial structures of known criminal networks. This move positions cryptocurrencies as an active tool in Brazil’s broader strategy to modernize the justice system and improve public security efforts.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.