Brazil’s New Law Grants Police Powers to Seize Crypto for Public Security
Brazil has enacted a landmark law, Law No. 15.358, signed by President Luiz Inácio Lula da Silva, equipping law enforcement with unprecedented powers to freeze, block, and seize both traditional and digital assets, including cryptocurrencies, during investigations. This marks a major step in the country’s crackdown on organized crime.
The legislation allows for 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. The law specifically targets ultraviolent criminal organizations, paramilitary groups, and private militias, broadening the definition of crimes and significantly increasing 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 legislation also facilitates international cooperation for asset recovery and intelligence sharing, aiming to track and recover illicit proceeds across borders. Civil measures are strengthened: courts can seize property, block funds, and liquidate assets connected to criminal activity. A national criminal database integrates the financial structures of known criminal groups, improving coordination between police, prosecutors, and the judiciary.
Brazil’s Attempt at a Bitcoin Reserve
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. Presented by Federal Deputy Luiz Gastão (PSD/CE), the bill 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.
Engie Considers Bitcoin Mining at Brazilian Solar Plant
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 northeast Brazil to offset curtailment losses and boost project economics, Reuters reports. Despite entering full commercial operation this month, the facility has already faced grid-imposed restrictions that limit output when supply exceeds demand.