Brazil Enacts New Law: Confiscated Crypto Assets to Fund Public Security, Intensifying Crackdown on Crime

Odaily News: Brazilian President Lula has signed Law No. 15,358, explicitly incorporating crypto assets seized during law enforcement into the public security funding system. These funds will be allocated for police equipment, intelligence operations, personnel training, and other related expenditures. The law permits the temporary use of relevant crypto assets before a final conviction, subject to court approval.

The new regulation also significantly expands the authority of judicial bodies, allowing them to freeze, block, or confiscate crypto assets during the investigation phase. This includes restricting access to exchange accounts, digital wallets, and related platforms. Upon conviction, individuals involved will be permanently barred from using the formal financial system and crypto systems.

Furthermore, the law designates the use of encrypted communication tools or privacy technology to conceal criminal activities as an aggravating circumstance. It promotes cross-border asset recovery and intelligence sharing while establishing a national-level database to integrate the financial structures of criminal organizations.

Analysis suggests this move signifies Brazil's shift in viewing crypto assets from a potential reserve tool to a law enforcement resource. It strengthens the crackdown on organized crime (such as PCC, Comando Vermelho) and advances the judicial system's capabilities in regulating and disposing of digital assets. (CoinDesk)