Brazil passes new law to include seized crypto assets in public safety funds, expanding law enforcement authority.

Gate News reports that on March 26, Brazilian President Lula signed Law No. 15,358, which explicitly incorporates seized crypto assets into the public safety fund system for expenses such as police equipment, intelligence operations, and personnel training. The law allows for the temporary use of relevant crypto assets before final conviction, with court approval.

The new regulation significantly expands the authority of judicial agencies, enabling them to freeze, block, or confiscate crypto assets during investigations, including restricting access to exchange accounts, digital wallets, and related platforms. Once convicted, involved individuals will be permanently barred from using formal financial systems and crypto networks.

Additionally, the law classifies the use of encrypted communication tools or privacy technologies to conceal criminal activities as an aggravating factor. It promotes cross-border asset recovery and intelligence sharing, and establishes a national database integrating the financial structures of criminal organizations.

Analysts believe this move marks Brazil’s shift from viewing crypto assets as potential reserves to a law enforcement resource, strengthening efforts against organized crime groups such as PCC and Comando Vermelho, while advancing the judicial system’s capacity to regulate and manage digital assets.