Brazilian President Luiz Inácio Lula da Silva signed into law Law No. 15.358 on March 25, 2026, establishing a comprehensive framework for cryptocurrency seizure and asset recovery. According to reports from CoinDesk, the legislation represents a significant expansion of Brazil's digital asset enforcement capabilities, particularly targeting organized crime groups including the PCC and Comando Vermelho.
Under the new law, cryptoassets confiscated from criminal organizations can be funneled into Brazil's public security system to fund essential operations. As reported by CoinDesk, this includes funding for police equipment, intelligence operations, and officer training programs. The legislation explicitly allows the provisional use of these assets before a final conviction, provided it receives approval from a judge, representing a practical approach to immediate resource allocation during ongoing investigations.
The legislation significantly expands judicial authority to freeze, block or seize cryptoassets during investigations, including the ability to suspend access to exchanges, digital wallets, and online platforms. According to CoinDesk, once convicted, individuals permanently lose access to both formal financial and cryptocurrency systems. The law also defines the use of encrypted messaging apps or privacy tools to conceal criminal activity as an aggravating factor, increasing potential sentences for offenders.
The legislation enables international cooperation for asset recovery and intelligence sharing, creating a comprehensive approach to transnational organized crime. As reported by CoinDesk, the law establishes a national criminal database integrating financial structures of known criminal groups, providing law enforcement with enhanced tools for tracking and dismantling criminal networks. This framework aligns with Brazil's broader efforts to modernize the justice system's handling of digital property and organized crime.