Brazil has recently enacted a groundbreaking law that enables authorities to allocate cryptocurrencies seized from criminal organizations directly toward public security initiatives. This legislation represents a significant advancement in the country’s efforts to combat organized crime.
Signed into law by President Luiz Inácio Lula da Silva, Law No. 15.358 grants law enforcement agencies expansive powers to freeze, block, and seize both traditional and digital assets—including cryptocurrencies—during the course of investigations.
Furthermore, the legislation allows for the provisional utilization of seized crypto assets, contingent upon judicial approval, to fund police operations, intelligence activities, officer training, and various public security measures—even prior to obtaining final convictions.
This law primarily targets ultra-violent criminal organizations, paramilitary groups, and private militias, significantly broadening the scope of defined crimes and imposing harsher penalties for offenses such as territorial control, hindrance of police activity, and use of encrypted messaging applications and privacy-enhancing tools for illicit purposes.
Authorities are now empowered to suspend access to exchanges, digital wallets, and online platforms during investigations, with the potential for permanent restrictions to be instituted following a conviction.
Additionally, this legislation enhances international collaboration for asset recovery and intelligence sharing, aiming to trace and recover illicit proceeds across borders.
It also strengthens civil measures, allowing judicial authorities to seize property, block funds, and liquidate assets related to criminal endeavors.
The law institutes a national criminal database that integrates the financial networks of known criminal groups, thereby improving coordination between police, prosecutors, and judicial systems.
Brazil’s Initiative Toward a Bitcoin Reserve
In February 2026, Brazilian lawmakers reintroduced a proposal for the creation of a Strategic Sovereign Bitcoin Reserve (RESBit), with the objective of acquiring one million bitcoins over five years.
This bill, introduced by Federal Deputy Luiz Gastão (PSD/CE), provides a comprehensive framework to incorporate Bitcoin into the nation’s financial strategy and diversify national reserves.
The proposed legislation would prohibit the sale of bitcoins seized by judicial authorities, permit federal taxes to be collected in Bitcoin, and encourage public enterprises to engage in Bitcoin mining and storage.
RESBit aims to emphasize transparency and security, mandating public disclosure of holdings and the implementation of cold storage solutions, multisignature wallets, and other established storage methods.
If this proposal is approved, Brazil would join a limited group of nations holding national Bitcoin reserves, following the examples set by El Salvador and proposals within the United States.
Moreover, French utility giant Engie is contemplating the integration of battery storage or Bitcoin mining data centers at its recently launched 895-MW Assu Sol solar plant in Brazil. This initiative aims to mitigate curtailment losses and enhance financial viability, as reported by Reuters.
Despite commencing full commercial operations this month, the northeastern Brazil facility has already encountered grid-imposed restrictions that limit output when supply surpasses demand.
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