Brazil's New Law: Seized Crypto for Public Security
Brazil has enacted a landmark law, Law No. 15.358, signed by President Luiz Inácio Lula da Silva, that allows authorities to channel cryptocurrencies seized from criminal organizations directly into public security initiatives. This marks a major step in the country’s crackdown on organized crime. The legislation equips law enforcement with unprecedented powers to freeze, block, and seize both traditional and digital assets, including crypto, during investigations.
The law also permits the provisional use of seized cryptoassets, with judicial approval, to fund police operations, intelligence work, officer training, and other public security efforts—even before final convictions. This significantly enhances the flexibility and efficiency of crime-fighting resources.
New Enforcement Tools: Freezing, Seizing, and Temporary Use
The legislation specifically targets ultraviolent criminal organizations, paramilitary groups, and private militias. It broadens the definition of crimes and significantly increases penalties for acts such as controlling territories, obstructing police, or using encrypted messaging apps and privacy tools to conceal illicit activity. Authorities can now suspend access to exchanges, digital wallets, and online platforms during investigations, with permanent restrictions applied upon conviction.
The law further strengthens civil measures, allowing courts to seize property, block funds, and liquidate assets connected to criminal activity. It establishes a national criminal database that integrates the financial structures of known criminal groups, improving coordination between police, prosecutors, and the judiciary.
International Cooperation and Asset Recovery
The new law provides a framework for international cooperation on asset recovery and intelligence sharing, aiming to track and recover illicit proceeds across borders. This enables Brazil to collaborate more closely with other countries against transnational criminal networks.
Brazil's Attempt at a Bitcoin Reserve (RESBit)
Back 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. The bill, presented by Federal Deputy Luiz Gastão (PSD/CE), outlines a comprehensive framework to integrate Bitcoin into the country’s financial strategy and diversify national reserves.
The legislation would prohibit selling bitcoins seized by judicial authorities, allow federal taxes to be collected in Bitcoin, and encourage public companies to participate in Bitcoin mining and storage. RESBit would emphasize transparency and security, requiring public disclosure of holdings and use of cold wallets, multisignature wallets, and other recognized storage methods. If approved, Brazil would join a small group of countries holding national Bitcoin reserves, following examples like El Salvador and proposals in the United States.
Other Developments: Engie Exploring Bitcoin Mining and Storage
French utility giant Engie is considering adding battery storage or bitcoin mining data centers at its newly launched 895-MW Assu Sol solar plant in Brazil to offset curtailment losses and boost project economics, Reuters reports. Despite entering full commercial operation this month, the northeast Brazil facility has already faced grid-imposed restrictions that limit output when supply exceeds demand. By integrating Bitcoin mining or storage, Engie aims to mitigate these losses and improve project viability.