Brazil has enacted a groundbreaking law that permits authorities to utilize seized cryptocurrencies to bolster public security measures. President Luiz Inácio Lula da Silva signed Law No. 15.358, granting law enforcement unprecedented powers to freeze, block, and seize digital assets, including Bitcoin, from criminal entities. This move signifies a major stride in Brazil's ongoing crackdown on organized crime and its increasing integration of digital assets into the national financial strategy.
The legislation enables the provisional use of seized crypto assets, with judicial approval, to finance police operations, intelligence efforts, officer training, and other public safety endeavors, even before final convictions are secured. It specifically targets ultra-violent criminal organizations, paramilitary groups, and private militias, while also broadening the definition of crimes and increasing penalties for offenses like controlling territories and obstructing law enforcement. Authorities can now suspend access to exchanges, digital wallets, and online platforms during investigations, with permanent restrictions imposed upon conviction.
The law also facilitates international cooperation for asset recovery and intelligence sharing, aiming to track and recover illicit proceeds across borders. A national criminal database will be established to integrate the financial structures of known criminal groups, improving coordination between police, prosecutors, and the judiciary. Furthermore, the law strengthens civil measures, empowering courts to seize property, block funds, and liquidate assets connected to criminal activity.
In February 2026, Brazilian lawmakers reintroduced a bill proposing the creation of a Strategic Sovereign Bitcoin Reserve (RESBit) to gradually acquire one million bitcoins over five years. This initiative, coupled with the new law, signals a broader shift in Brazil's policy towards digital assets, potentially positioning the nation among the first to explore sovereign Bitcoin holdings.
