Brazil has passed a new law allowing authorities to use confiscated cryptocurrency and other seized assets to fund public security efforts.
The legislation enables law enforcement to treat digital assets as instruments of crime, allowing their seizure and use for police equipment, training and special operations.
“The forfeited assets and valuables may be used provisionally by public security agencies for police re-equipment, training, and special operations,”
The law states.
The measure also allows authorities to restrict transactions on crypto exchanges linked to criminal activity and strengthens coordination with international agencies for asset recovery.
The law comes as Brazil intensifies its fight against organised crime, following large-scale laundering cases involving crypto, including networks moving billions through OTC brokers and shell companies.
With more than 213 million people and widespread crypto adoption, the policy could significantly expand resources available to law enforcement.
Separately, Brazil is still considering a proposal to create a national Bitcoin reserve, though its status remains uncertain as lawmakers debate broader crypto policy.
At the time of reporting, Bitcoin price was $68,732.96.