Brazilian President Luiz Inácio Lula da Silva has signed Law No. 15.358, granting law enforcement the authority to freeze, seize, and liquidate digital assets — including Bitcoin — linked to serious crimes. The law treats crypto assets the same as traditional financial assets, targeting organized crime, paramilitary groups, and private militias.
Core Provisions: Wallet Freezes and Exchange Account Seizures
Under the new law, courts can order precautionary measures such as freezing wallets, blocking exchange accounts, and restricting access to online platforms when strong evidence ties assets to organized crime, paramilitary groups, or private militias. A key provision allows judges to approve early liquidation of seized crypto assets before a final conviction. The proceeds from such liquidations are redirected to public security budgets, meaning seized crypto can be converted to cash and used for law enforcement spending without waiting for lengthy trials.
The legislation also expands enforcement tools to international cooperation, enabling Brazil to work with foreign agencies to track and recover digital assets across borders, preventing criminal groups from moving funds between jurisdictions. Additionally, the law creates a national criminal database that links the financial structures of known criminal organizations, improving coordination among police, prosecutors, and courts.
Brazil's Crypto Holdings and Reserve Debate
The new law arrives as Brazil debates broader crypto policies. In August 2025, lawmakers discussed creating a national Bitcoin reserve. A revised proposal in February 2026 suggested allowing purchases of up to 1 million BTC, but no final decision has been made. Instead of building a strategic reserve, the government opted to channel seized crypto assets directly into law enforcement funding.
Crypto adoption in Brazil continues to rise. Approximately 17.5% of the population (about 16 million people) now own cryptocurrency. Public companies in Brazil hold roughly 4,328 BTC, worth nearly $296 million, with additional exposure through ETFs and exchanges.
Market Reaction
As of press time, Bitcoin is trading at approximately $68,572, down about 2% in the last 24 hours as markets react to broader macroeconomic pressures. The new law signals that Brazil is moving beyond simple regulation toward actively integrating seized crypto assets into state systems.