Brazil's New Crypto Law Grants Sweeping Powers to Freeze and Seize Digital Assets

Brazil has introduced a tough new law targeting digital assets linked to serious crimes. Signed by President Luiz Inácio Lula da Silva, the legislation gives authorities broader powers to freeze, seize, and liquidate cryptocurrencies. The move comes as Bitcoin trades near $68,572, slightly down over the past day. The law, known as Law No. 15.358, allows judges to order immediate action against digital wallets, exchange accounts, and online platforms. If strong evidence ties assets to organised crime, paramilitary groups, or private militias, authorities can block or confiscate them. They can also liquidate seized crypto before a final conviction.

During investigations, officials may suspend access to exchanges, wallets, and financial platforms. After a conviction, permanent restrictions can be imposed. Recovered funds will go toward public security budgets, boosting law enforcement resources. The legislation also strengthens international cooperation. Brazil can now work with foreign agencies to track and recover digital assets across borders. This comes as crypto adoption grows in the country, with around 16 million people—17.5% of the population—owning cryptocurrency. Public companies currently hold about 4,328 Bitcoin, worth nearly $296 million. Meanwhile, Brazil continues to debate broader crypto policies. A discussion in August 2025 will explore the idea of a national Bitcoin reserve, though no final decision has been made.

The new law expands enforcement tools against crypto-related crime while redirecting seized assets to security funding. With Bitcoin prices fluctuating and adoption rising, Brazil's approach reflects both regulatory tightening and ongoing policy debates. Authorities now have more power to act quickly in investigations involving digital assets.