Brazil passes new law: confiscation of crypto assets will be used for public security spending, increasing efforts to combat crime.

Brazilian President Lula da Silva has signed Law No. 15,358, explicitly including crypto assets seized during law enforcement within the public security fund system for expenditures such as police equipment, intelligence operations, and personnel training. The law allows for the temporary use of relevant crypto assets, with court approval, before final conviction. The new regulations also significantly expand the powers of the judiciary, allowing them to freeze, block, or confiscate crypto assets during the investigation phase, including restricting access to exchange accounts, digital wallets, and related platforms. Once convicted, those involved will be permanently barred from using the formal financial system and crypto systems. Furthermore, the law classifies the use of encrypted communication tools or privacy technologies to conceal criminal activity as an aggravating circumstance and promotes transnational asset recovery and intelligence sharing, while establishing a national database integrating the financial structures of criminal organizations. Analysts believe this move signifies Brazil's shift from a potential reserve asset to a law enforcement resource, strengthening the fight against organized crime (such as the PCC and Comando Vermelho) and upgrading the judicial system's ability to regulate and handle digital assets. (CoinDesk)