Brazil has enacted a law allowing public security agencies to seize and use cryptocurrency to support law‑enforcement activities. Published Wednesday as Law No. 15.358 (dated March 24, 2026), the measure creates a legal framework to treat digital assets as potential instruments of crime, to block or freeze transactions on crypto exchanges, and to confiscate crypto holdings for public security purposes.
The law clarifies that any asset employed to commit a criminal act can be considered an instrument of that crime, even if it was not exclusively intended for illegal use. Forfeited assets and valuables may be provisionally put to use by police and other security bodies for re‑equipment, training and special operations, but only with authorization from the judge responsible for overseeing sentence execution. The statute also formalizes cooperation with foreign authorities for investigations and asset recovery, explicitly covering digital assets.
With more than 213 million residents and widespread crypto adoption, the change could materially increase resources available to Brazil’s security forces. The law follows high‑profile enforcement actions such as the Federal Police’s 2025 Operation Lusocoin, which investigators and analysis firm TRM Labs say targeted a major laundering and foreign‑exchange evasion network that moved tens of billions of reais through shell companies, OTC brokers and non‑custodial wallets.
Finance Minister Dario Durigan has reportedly pushed to postpone discussions about altering crypto tax policy, preferring to delay potentially contentious tax changes until after the presidential election in October. That timing leaves the new forfeiture rules in place while broader tax reforms remain on hold.
The forfeiture provisions are distinct from earlier proposals to build a national crypto reserve. Lawmakers have debated creating a national Bitcoin reserve since 2024; an initial proposal capped purchases at up to 5% of the treasury, and a later revision in February expanded the potential ceiling to allow acquisitions of up to one million BTC. As of March it remained uncertain whether the reserve bill would gain enough support to advance.
