Brazilian public security agencies have a fresh weapon in the fight against organized crime after the country’s lawmakers approved a measure allowing them to utilize confiscated cryptocurrency in their efforts.
Brazil’s legislature on Wednesday published Law No. 15.358 establishing a legal framework for combating organized crime. The law allows authorities to prohibit transactions on cryptocurrency exchanges, treating digital assets as a weapon of crime, and to confiscate cryptocurrencies in order to utilize them to finance public security.
“For the purposes of asset forfeiture, any property that was used to commit a crime, even if it was not intended exclusively for that purpose, is considered an instrument of crime,” reads the translation of the law, which included:
“Confiscated property and valuables may be temporarily used by public security agencies for police re-equipment, training and special operations, subject to approval by the judge supervising the execution of the sentence.”
Specifically, the bill would authorize Brazil to coordinate and cooperate with international authorities on investigations and asset recovery, including matters potentially involving digital assets. With a population of over 213 million, many of whom utilize cryptocurrencies, the legislation could have significant consequences for the Brazilian government’s war measures.
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The signing of the bill came after reports that Brazilian Finance Minister Dario Durigan planned to delay talks on changing the country’s tax policy regarding cryptocurrencies. Durigan reportedly wanted to avoid divisive changes to tax policy and postponed discussions until October after Brazil’s presidential elections.
In 2025, the Brazilian Federal Police’s Operation Lusocoin was aimed at massive money laundering and foreign exchange evasion, According to to TRM laboratories. Authorities estimate that the network moved tens of billions of Brazilian reais through a network of shell companies, OTC cryptocurrency brokers and non-custodial wallets.
Brazil continues to review its national crypto reserve
Unlike countries like the United States, where cryptocurrencies confiscated in criminal cases can be used to shore up national stockpiles of digital assets, Brazilian law would redirect funds to public security measures such as police training. However, the Brazilian government has discussed a proposal to create a national Bitcoin (BTC) reserve in August 2025.
The BTC Reserves Act, originally introduced in 2024, could allow Brazil to allocate up to 5% of its treasury to purchase Bitcoin. In February, lawmakers reintroduced the regulations, expanding their scope to allow purchases of up to one million BTC. Until March, it was unclear whether the bill would gain enough support to be passed in the future.
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