Brazil has introduced a significant policy shift allowing the use of confiscated digital assets to enhance public security. With the enactment of Law No. 15.358, President Luiz Inácio Lula da Silva authorized law enforcement and judicial bodies to freeze and provisionally use both traditional and digital assets—including cryptocurrencies—during criminal investigations and proceedings.
Judicial Oversight and Expanded Powers
The new regulation gives police the authority to block, freeze, and seize assets belonging to individuals and organizations suspected of criminal activity. Courts can authorize provisional use of these assets to fund police operations, intelligence activities, and officer training long before any final conviction. The statute is targeted at combating violent criminal groups, organized paramilitary organizations, and private militias, strengthening responses to crimes involving territorial control and obstruction of law enforcement.
Law No. 15.358 also penalizes the use of encrypted messaging platforms and privacy technologies that may assist in concealing criminal conduct. Authorities are empowered to suspend access to both crypto exchanges and digital wallets during the course of investigations, with the possibility of imposing permanent measures following a guilty verdict. The civil framework is broad, including strengthened mechanisms for the liquidation of illicitly acquired property and increased asset recovery efforts.
Institutional Collaboration and Cross-Border Coordination
The Brazilian Ministry of Justice highlighted the creation of a national criminal database, which will integrate intelligence regarding the financial networks of criminal organizations. The coordinated framework aims to support more effective cooperation between law enforcement, public prosecutors, and the judiciary. Judicial approval remains a mandatory condition for every instance of asset utilization, ensuring checks and balances in the implementation of these measures.
Plans are underway for improved international cooperation with foreign organizations, focusing on tracking cross-border illicit flows and recovering embezzled funds. This push for intelligence sharing seeks to address the increasingly global nature of financial crime, particularly around digital assets that can be transferred rapidly across jurisdictions.
Law No. 15.358 represents continued efforts by Brazilian authorities to modernize and fortify legal structures against organized crime. Brazil’s recent move follows growing concern over the role of cryptocurrencies in money laundering and the funding of criminal groups, prompting renewed focus on legal clarity and asset recovery tools.
Interest is also increasing among lawmakers regarding the potential state-held reserves of digital assets. In February 2026, Luiz Gastão, a federal deputy from the Social Democratic Party (PSD/CE), reintroduced a bill in Brazil’s Congress proposing the creation of a Strategic Sovereign Bitcoin Reserve. The legislation suggests an acquisition target of 1 million bitcoins over a five-year period, curtailing the sale of judicially seized bitcoins and enabling the payment of federal taxes via Bitcoin.
The proposed Strategic Sovereign Bitcoin Reserve would require stringent transparency standards, public disclosure of reserve balances, and secure storage through cold wallets and multisignature systems. If it proceeds, Brazil may join other nations, including El Salvador, in managing official Bitcoin reserves. The bill is currently under legislative review.
Meanwhile, recent developments also include the launch of Engie’s Assu Solar plant in northeastern Brazil, a project entering commercial operation with 895 megawatts capacity. The company is evaluating measures such as on-site battery storage and bitcoin mining facilities to address grid curtailments and optimize economic performance, though no final investment decision has been revealed so far.
