Brazil Gives Police a New Crypto Tool

Brazil’s lawmakers have passed a new rule that lets police use crypto they seize from criminals. The move gives law‑enforcement agencies a fresh way to fight organized crime. The new law, numbered 15. 358, says that any digital money used in a crime can be taken away by the state. The seized crypto may then be handed over to police forces for buying gear, running training programs or funding special missions. A judge must approve the use of these assets each time. The legislation also opens doors for Brazil to team up with other countries. If a crime involves digital money that crosses borders, Brazilian authorities can work together with foreign investigators to track and recover the funds. Brazil has a huge population that uses cryptocurrency. The new rule could therefore add a significant amount of money to the government’s security budget.The decision comes after the country’s finance minister said he would pause changes to crypto tax policy until after the upcoming presidential election. That delay was intended to avoid political controversy over how cryptocurrencies are taxed. In 2025, the Federal Police launched a major operation called Lusocoin. That raid targeted a large money‑laundering scheme that moved billions of reais through shell companies, over‑the‑counter brokers and unprotected wallets. Unlike the United States, where seized crypto can be kept in a national reserve, Brazil’s law redirects those funds straight to police work. Still, the government has talked about creating a national Bitcoin reserve that could spend up to 5 % of the treasury on crypto. The proposal has been revived in recent months, but its future is uncertain. The new rule shows Brazil’s growing willingness to use technology in its fight against crime, while also raising questions about how much of the seized money should stay in public safety versus being held as a national asset.