Brazilian legislation passes to include seized cryptocurrencies into the "Public Safety Fund," while simultaneously expanding law enforcement and freezing powers.

Brazilian President Lula has officially signed Law No. 15,358, allowing seized cryptocurrency assets to be directly incorporated into the public safety fund system. These funds will be used to upgrade police equipment, support intelligence operations, and train personnel.
(Background: Brazil calls for “buy 1 million Bitcoins in five years”! The House introduces the RESBit proposal to establish a national strategic BTC reserve)
(Additional context: Brazil’s largest bank, Itaú, advises clients to allocate 3% of their portfolio to Bitcoin to counter dollar devaluation)

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• Seized cryptocurrencies will be used for police upgrades
• Expanding judicial authority with permanent bans
• Targeting major gangs and promoting international intelligence sharing

Brazil has taken a significant step forward in cryptocurrency regulation and combating financial crime. In response to the rising tide of transnational crime and money laundering, President Luiz Inácio Lula da Silva has officially signed Law No. 15,358. This new regulation not only greatly expands judicial powers but also establishes, for the first time, that confiscated cryptocurrency assets can be converted into “war chest funds” for national security.

In the past, many countries faced lengthy legal procedures and asset disposal challenges when dealing with seized digital assets. However, the Brazilian government demonstrates a firm law enforcement stance, aiming to turn illegal proceeds of crime directly into tools for fighting crime through legislative innovation.

Seized cryptocurrencies will be used for police upgrades

According to the specifics of Law No. 15,358, law enforcement agencies will incorporate cryptocurrencies confiscated during investigations into the public safety fund system. These funds are explicitly designated for purchasing police equipment, supporting advanced intelligence operations, and training law enforcement personnel.

Notably, the law permits the temporary use of these seized assets before final court rulings, with court approval. This means police and intelligence agencies can access funds more quickly without waiting for lengthy judicial processes.

Expanding judicial authority with permanent bans

To prevent criminals from transferring funds, the law grants authorities stronger investigative powers. During investigations, law enforcement can freeze, block, or confiscate suspects’ cryptocurrency assets at any time. This authority extends beyond exchange accounts to digital wallets and other related platforms.

Furthermore, individuals convicted under this law face severe penalties: a permanent ban from using formal financial systems and cryptocurrency platforms. If suspects use encrypted communication tools or privacy technologies to conceal illegal activities, such actions will be considered aggravating factors.

Targeting major gangs and promoting international intelligence sharing

On a strategic level, the law actively promotes international asset recovery and intelligence sharing mechanisms. Plans include establishing a nationwide database to integrate and track the financial structures of criminal organizations.

Analysts note that this move signifies the Brazilian government’s shift of cryptocurrency from a potential reserve tool to a critical law enforcement resource. This will significantly enhance authorities’ ability to combat large transnational organizations, especially gangs like the First Capital Command (PCC) and the Red Command (Comando Vermelho). This development marks an important milestone in Brazil’s security history and offers a valuable reference for global systems on how to regulate and manage digital assets.