Brazil Proposes Bill to Liquidate Cryptocurrency Before Verdicts

According to PANews, Brazilian President Luiz Inácio Lula da Silva has introduced Bill No. 5.582/2025 to Congress, which would allow financial institutions to liquidate cryptocurrencies before a verdict is reached in legal proceedings. This approach aligns with the handling of foreign exchange, checks, and securities. However, the bill does not clarify the procedure if a suspect is acquitted. The initiative is part of a broader legislative effort to combat the financial networks of criminal organizations, including factions like 'Comando Vermelho.' Simultaneously, the Central Bank of Brazil is advancing significant regulatory reforms in the cryptocurrency sector. New regulations mandate that cryptocurrency companies obtain licenses and maintain capital reserves ranging from 10.8 million to 37.2 million Brazilian reais, depending on their business activities. These regulations, which classify cryptocurrency activities under Brazil's foreign exchange and capital markets laws, are set to take effect in February.