Brazil has introduced a landmark law that allows authorities to use cryptocurrencies seized from criminal organizations directly for public security operations, marking a major step in the country’s fight against terrorism.
Signed by President Luiz Inácio Lula da Silva, Decree 15,358 equipment law enforcement with unprecedented powers to block, freeze, and confiscate traditional and digital assets, including crypto, for investigation.
The law also allows for the temporary use of seized cryptoassets, with court approval, to support police operations, professional services, police training, and other public safety efforts – even before final disposal.
The law specifically targets violent organizations, armed groups, and secret militias, broadening the definition of crimes and greatly increasing penalties for activities such as controlling territories, imprisoning police, or using messaging apps and secret devices to hide illegal activities.
Authorities can now suspend access to exchanges, digital wallets, and online platforms during investigations, with permanent bans imposed upon conviction.
The law also supports international cooperation on asset recovery and intelligence sharing, with the aim of tracking and recovering illegal money across borders.
The law also strengthens the government’s administrative procedures, allowing courts to seize property, freeze funds, and destroy property related to criminal activity.
It establishes a national crime database that aggregates money from known gangs, and facilitates cooperation between police, prosecutors, and judges.
Brazil’s experiment on bitcoin storage
Back in February 2026, Brazilian lawmakers brought back a bill that calls for the creation of a Strategic Sovereign Bitcoin Reserve (RESBit) to gradually acquire one million bitcoins over five years.
The bill, proposed by Federal Deputy Luiz Gastão (PSD/CE), outline a comprehensive plan to integrate Bitcoin into the national financial system and to diversify international reserves.
The bill would prohibit the sale of bitcoins seized by law enforcement officials, allow federal taxes to be collected from Bitcoin, and encourage government companies to participate in Bitcoin mining and storage.
RESBit will emphasize transparency and security, which requires public disclosure and the use of cold wallets, multi-wallets, and other popular storage methods.
If approved, Brazil would join a small group of countries with national Bitcoin reserves, following examples such as El Salvador and proposals in the United States.
Also, the French giant Engie is consideration is adding battery storage or a bitcoin data center at its new 895-MW Assu Sol plant in Brazil to offset losses and boost the project’s economy, Reuters reports.
Although it will begin commercial operations this month, the northeastern Brazilian field already faces restrictions that limit production beyond demand.
