Brazil Proposes Selling Seized Bitcoin to Undercut Organized Crime Networks

The Brazilian authorities has proposed a regulation that will permit the sale of bitcoin BTC$101,516.94 and different cryptocurrencies seized throughout prison investigations at a time when the nation seems to be cracking down on organized crime.

Invoice 5.582/2025, despatched to Congress by President Luiz Inácio Lula da Silva, would authorize monetary establishments to liquidate cryptocurrencies even earlier than the result of the trial, simply as foreign currency, checks and securities are handled. It isn’t clear what occurs if suspects are later acquitted.

Officers mentioned the measure is geared toward hitting gangs the place it hurts: their wallets, and is a part of a broader “anti-faction regulation” that amends laws on prison organizations and Brazil’s prison process code. It targets the monetary infrastructure of gangs like Comando Vermelho, one of many nation’s strongest prison factions.

The timing of the proposal is exceptional. It comes days after a significant police operation in Rio’s favelas killed 121 folks, most of them alleged gang members, in what’s now the nation’s deadliest police raid.

Authorities mentioned the raid focused Comando Vermelho leaders and concerned greater than 2,500 officers.

The push to liquidate seized crypto belongings is unfolding alongside a significant regulatory overhaul by Brazil’s central financial institution. The central financial institution has launched new guidelines requiring crypto corporations to be licensed and keep capital reserves starting from 10.8 million ($2 million) to 37.2 million reais, relying on their actions.

The foundations, which come into impact in February, classify a variety of crypto actions underneath Brazil’s foreign money and capital markets legal guidelines.

They require corporations to report worldwide transactions, together with stablecoin funds and transfers to self-custodial wallets, and set a $100,000 restrict on any transaction involving overseas foreign money.

The anti-party invoice is underneath pressing consideration in Congress and have to be put to a vote earlier than December 18.