Brazil has passed a new law allowing its public security agencies to seize and use cryptocurrencies confiscated from organized crime groups. The legislation, Law No. 15.358, provides a framework to treat digital assets as instruments of crime and authorizes their provisional use for police equipment, training, and operations. This move comes amid ongoing large-scale crypto-related crime investigations in the country.
Brazil’s legislative branch has approved a law granting public security agencies significant new powers against organized crime. Law No. 15.358 establishes a legal framework for authorities to treat digital assets as instruments of a crime.
This allows them to prohibit transactions on crypto exchanges and to confiscate cryptocurrency. The confiscated assets can then be used to fund public security efforts directly.
The law states that any asset used to commit a crime is considered an instrument of that crime. This applies even if the asset was not intended exclusively for criminal purposes.
For forfeited assets, the text specifies “The forfeited assets and valuables may be used provisionally by public security agencies for police re-equipment, training, and special operations, subject to authorization from the judge overseeing the execution of the sentence.” The law also authorizes Brazil to coordinate with international authorities for investigations and asset recovery involving digital assets.
The signing follows reports that Brazil’s Finance Minister, Dario Durigan, planned to delay talks on changing the country’s crypto tax policy. According to reports, Durigan aimed to avoid divisive changes before Brazil’s presidential election in October.
This legal development comes after major crypto crime investigations in the country. Authorities estimate a network targeted in 2025’s Operation Lusocoin moved tens of billions of Brazilian reais through shell companies and crypto brokers, according to TRM Labs.
The new law differs from proposals in other nations to add seized crypto to a national reserve. Instead, Brazilian funds will be directed to public security measures. However, Brazil’s government has separately discussed creating a national Bitcoin (BTC) reserve.
A bill reintroduced in February 2026 could allow Brazil to allocate treasury funds to purchase up to one million BTC. It was unclear as of March if this legislation had enough support to pass.
