Key Takeaways
- Brazil signed the law on Mar. 25, allowing seizure and liquidation of crypto assets from criminals.
- Seized Bitcoin and digital assets can now fund police equipment, training, and public security operations.
- The measure expands courts’ powers to freeze crypto assets during investigations targeting organized crime groups.
Brazil is moving more aggressively to cut off criminal money at its source—and crypto is now firmly in focus.
On March 25, President Luiz Inácio Lula da Silva signed Law No. 15.358, giving courts and law enforcement expanded powers to freeze, seize, and liquidate digital assets such as Bitcoin linked to serious crimes.
Known as the Raul Jungmann Law, or Anti-Gang Law, the measure signals a shift: crypto is no longer just tracked—it can now be actively converted into funding for law enforcement.
The Crypto Seizure Law
The law specifically targets organized crime groups, including paramilitary networks and private militias.
It allows courts to seize assets—including “digital or virtual assets”—even during ongoing investigations and without prior notice to suspects.
Judges can also authorize early liquidation or temporary use of these assets before a final conviction, as long as there is a clear link to criminal activity.
What sets this law apart is how the funds are used.
Instead of holding seized crypto indefinitely, Brazil can now convert it into immediate funding for public safety.
Proceeds can go toward police equipment, training programs, and operational support, effectively turning confiscated crypto into a direct resource for law enforcement.
The broader goal is to weaken the financial backbone of major criminal groups like the PCC and Comando Vermelho by hitting their assets quickly, including crypto holdings.
The idea for the law emerged in late 2025, when President Lula introduced Bill 5.582/2025 as part of a wider anti-organized crime push.
The proposal treated cryptocurrencies similarly to traditional financial assets, allowing liquidation even before trial.
Congress fast-tracked the bill, and after revisions, it was passed into law on March 25.
New Crypto Regulations
This move builds on Brazil’s broader effort to regulate crypto as adoption grows rapidly across the country.
The regulatory foundation was set by Law 14.478/2022, which defined virtual assets and established basic rules for exchanges.
In November 2025, the Central Bank of Brazil introduced Resolutions 519, 520, and 521, which came into full effect in February 2026.
These created a stricter licensing regime for Virtual Asset Service Providers (VASPs).
Under the new framework, exchanges, custodians, and wallet providers must obtain approval, maintain capital reserves, segregate customer assets, and comply with full KYC and AML requirements, including the Travel Rule.
Tax rules have also tightened.
As of 2026, crypto profits are subject to a flat 17.5% capital gains tax, removing earlier exemptions.
Exchanges must report larger transactions, and penalties for non-compliance have increased.
At the same time, Brazil is exploring more forward-looking policies.
In February 2026, lawmakers reintroduced a proposal for a Strategic Bitcoin Reserve.
This suggests that while enforcement is tightening, interest in crypto as a national asset is also growing.
How Governments Handle Criminal Crypto Globally
Brazil’s approach reflects a broader global trend. Governments are increasingly treating crypto as traceable, seizable property.
The United States leads in scale.
In October 2025, authorities seized more than 127,000 Bitcoin—worth around $15 billion—from an alleged scam network, marking the largest crypto forfeiture in U.S. history.
U.S. agencies routinely track blockchain activity, seize wallets, and auction assets through the U.S. Marshals Service. Previous cases include funds tied to Silk Road and the Bitfinex hack.
The United Kingdom and European agencies have also stepped up enforcement, often working alongside U.S. authorities.
Europol has coordinated cross-border operations targeting fraud networks, freezing and recovering millions in crypto.
At a smaller scale, U.S. state authorities use civil forfeiture laws to seize crypto in cases involving phishing and money laundering, sometimes liquidating assets quickly to prevent losses from volatility.
Across jurisdictions, the pattern is clear: authorities are no longer just tracking illicit crypto flows—they are actively seizing and monetizing them.
Brazil’s new law fits squarely into this trend, but stands out for one reason.
It directly channels proceeds into day-to-day policing, turning confiscated crypto into an operational funding tool.
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Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
