Brazil's public security agencies have gained a new weapon in their fight against organized crime, as lawmakers have approved a measure that allows them to utilize seized cryptocurrencies in their enforcement efforts.
The translation of the law states: "For the purpose of asset forfeiture, any asset used in a crime will be considered an instrument of the crime, even if it was not specifically intended for that purpose." This legislation also includes:
Notably, the law authorizes Brazil to coordinate and cooperate with international agencies in investigations and asset recovery, particularly in cases involving digital assets. With a population exceeding 213 million, many of whom use cryptocurrencies, this legislation could have a significant impact on the Brazilian government's treasury.
Meanwhile, Brazil is still reviewing a national cryptocurrency reserve plan. The Bitcoin reserve bill, initially proposed in 2024, could allow Brazil to allocate 5% of its treasury to purchase Bitcoin. In February, lawmakers reintroduced the bill, expanding its scope to allow for the purchase of up to 1 million Bitcoins. As of March, it remained unclear whether the bill would gain enough support to pass.