Brazilian President Luiz Inácio Lula da Silva has signed a comprehensive legal regulation that brings significant changes in the fight against organized crime. In accordance with Law No. 15.358, which came into force on March 25, crypto assets seized from criminal organizations can now be considered for the public security of the country.
Supporting Public Safety with Cryptocurrencies
The new regulation envisages the expropriation of digital assets by the state and their use in the field of public security. Under the law, cryptocurrencies seized from criminals will contribute to the renewal of police equipment, intelligence operations and training of police personnel. In addition, with the approval of the court, such assets can be used temporarily for the public benefit in cases that have not yet been finalized.
The government did not embrace the views of some in the cryptocurrency industry to consider digital assets seized by the state as reserves. Instead, it focuses on using cryptocurrencies as a tool in the fight against known criminal organizations, especially the PCC and Comando Vermelho.
Brazil’s primary goals include enabling the justice system to manage digital assets more effectively and strengthening the financial leg of organized crime.
Jurisdiction and International Cooperation are Expanded
The law significantly increases the judiciary’s authority to freeze, block or seize crypto assets during investigations. In this context, the way has been paved for the suspension of suspects’ access to cryptocurrency exchanges, digital wallets and online platforms.
Even before a final decision was issued by the court, it became possible for judicial authorities to bring crypto assets to the public under certain conditions. Once a final verdict is given, those found guilty are permanently blocked from accessing both the traditional financial system and the crypto industry.
On the other hand, international cooperation is also strengthened with the law. Brazil will be able to establish closer relationships with judicial authorities abroad regarding the tracking and recovery of digital assets obtained from crime, as well as intelligence sharing.
In addition, a national crime database will be created where the financial structures of known criminal groups in the country will be kept together. This system aims to help investigations progress faster.
