Brazil took a major step in crypto regulation and financial crime fighting. President Luiz Inácio Lula da Silva signed Law No. 15,358, which for the first time enables seized crypto assets to be funneled directly into a public security war chest. Previously, such digital assets often languished through lengthy judicial procedures. The new law aims to convert criminal organizations' illicit proceeds into tools for combating crime.
Seized Crypto to Fund Police Equipment and Intelligence
The law mandates that crypto assets seized during investigations be integrated into the public security fund system. Funds are earmarked for purchasing police equipment, supporting high-level intelligence operations, and professional training of law enforcement personnel. Critically, with court approval, authorities can temporarily use these assets before final verdicts, enabling quicker access to resources without waiting for years-long litigation.
Expanded Seizure Powers and Lifetime Financial Ban for Convicts
To prevent criminals from moving funds, the law grants broader investigative authority. During investigations, agencies can freeze, block, or confiscate suspects' crypto assets at any time, covering exchange accounts, digital wallets, and other platforms. Those ultimately convicted face a permanent ban from using formal financial and crypto systems. Additionally, if offenders used encrypted communication or privacy tech to conceal crimes, it becomes an aggravating factor for sentencing.
Targeting Major Gangs and Cross-Border Intelligence Sharing
On a strategic level, the law promotes international asset recovery and intelligence-sharing mechanisms, and plans a national database to track criminal organizations' financial structures. Analysts say this transforms crypto from a potential reserve tool into a critical law enforcement resource, strengthening the fight against large transnational crime groups, particularly the First Capital Command (PCC) and Red Command (Comando Vermelho). It marks a milestone for Brazil's public safety and offers a model for global digital asset governance.