Brazil now has a law that lets the government freeze, take, and sell digital assets – like cryptocurrencies – if they’re connected to major crimes. President Lula signed the law to give authorities more power to go after criminals and use the proceeds from seized crypto to fund public safety programs.
Brazil Law Allows Seizure of Bitcoin and Digital Assets
Under Law No. 15.358, authorities now have the power to seize or block digital assets like cryptocurrencies during criminal investigations. This applies when there’s strong evidence connecting the assets to organized crime, illegal armed groups, or private militias.
Judges have the power to take steps like freezing digital wallets, blocking accounts on cryptocurrency exchanges, and limiting access to online platforms. The law also permits courts to order the sale of seized cryptocurrency even before a criminal case is fully decided.
Officials plan to use money recovered from illegal activities to fund public safety programs, signaling a change in how cryptocurrency-related cases are handled.
Authorities Can Freeze Wallets and Exchanges
The new law gives authorities more power to investigate and stop illegal activity involving digital assets. They can temporarily block access to cryptocurrency exchanges, digital wallets, and other financial platforms while investigating, and permanently restrict access after someone is convicted of a crime.
This law also improves collaboration with international partners, enabling Brazil to trace and reclaim digital assets located in other countries. The goal is to prevent criminal organizations from transferring money across borders to hide it.
This new law establishes a national database of criminals and their finances, connecting the financial networks of known criminal groups. It also helps police, prosecutors, and courts work together more effectively.
Brazil Chooses Seized Crypto Over Bitcoin Reserve
Brazil is considering how to regulate cryptocurrencies, and a new law is part of that discussion. Recently, in August 2025, politicians even talked about the possibility of establishing a national reserve of Bitcoin.
According to Coinpedia, a new plan proposed in February 2026 could allow for the purchase of as much as 1 million Bitcoin, but a final decision hasn’t been made yet.
Rather than saving the recovered cryptocurrency, the government decided to give it to law enforcement agencies.
Crypto Adoption Growing in Brazil
More and more people in Brazil are getting into cryptocurrency. Currently, about 16 million Brazilians – around 17.5% of the population – own crypto. Beyond individuals, Brazilian public companies are also investing, holding approximately 4,328 Bitcoin worth close to $296 million. They have even more crypto exposure through investments in ETFs and on exchanges.
Bitcoin is currently trading around $68,572, a decrease of about 2% over the past day, likely due to overall economic conditions.
This new law shows Brazil is going beyond simply regulating cryptocurrencies and is now planning to actively use seized crypto assets in its government systems.
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2026-03-27 09:37