Brazil’s public security agencies can now use confiscated cryptocurrency in operations after legislators approved a new law establishing a framework to combat organized crime.
On Wednesday the government published Law No. 15.358 (dated March 24, 2026), which enables authorities to treat digital assets as instruments of crime, block transactions on crypto exchanges, and seize crypto assets to fund public security efforts. The law states that any asset used to commit a crime may be considered an instrument of that crime, even if it was not exclusively intended for that purpose.
The legislation specifies that forfeited assets and valuables may be provisionally used by public security agencies for police re‑equipment, training, and special operations, but only with authorization from the judge overseeing sentence execution. It also allows Brazil to coordinate with international authorities on investigation and asset recovery, including in matters involving digital assets.
With a population of more than 213 million and widespread crypto usage, the new law could materially increase resources available to Brazil’s security forces. The measure follows recent enforcement actions: in 2025 the Federal Police’s Operation Lusocoin targeted a large laundering and foreign‑exchange evasion network that investigators said moved tens of billions of reais through shell companies, OTC brokers, and non‑custodial wallets, according to TRM Labs.
The law’s passage comes as Finance Minister Dario Durigan reportedly moved to delay discussions about changing crypto tax policy, preferring to defer potentially divisive tax changes until after the presidential election in October.
The new forfeiture provisions differ from proposals elsewhere to build national crypto reserves. Brazil has debated creating a national Bitcoin reserve since 2024; an initially proposed cap of up to 5% of the treasury was later broadened in February to permit purchases of up to one million BTC. As of March it remained unclear whether that reserve bill would secure enough support to advance.