Brazil passes new law: Confiscated cryptocurrencies will be used for public safety expenses and to strengthen crime prevention efforts.

According to CoinWorld, Brazilian President Lula has signed Law No. 15,358, explicitly incorporating seized crypto assets into the public safety fund system for expenses such as police equipment, intelligence operations, and personnel training. The law allows for the temporary use of relevant crypto assets before final conviction, with court approval. The new regulation also significantly expands judicial authority, enabling the freezing, blocking, or confiscation of crypto assets during investigations, including restrictions on exchange accounts, digital wallets, and related platform access. Once convicted, involved individuals will be permanently barred from using formal financial systems and crypto networks. Additionally, the law considers using encrypted communication tools or privacy technologies to conceal criminal activities as an aggravating factor, promotes cross-border asset recovery and intelligence sharing, and establishes a national database integrating the financial structures of criminal organizations. Analysts believe this move marks Brazil’s shift of crypto assets from potential reserve tools to law enforcement resources, strengthening efforts against organized crime groups such as PCC and Comando Vermelho, while upgrading the judicial system’s capacity to regulate and manage digital assets.