Brazil Permits Bitcoin Confiscation in New Crime Regulation
News By Caroline Amosun Fri, 27/03/2026 - 14:42 Brazil passes new crypto-based law that allows legal authorities to confiscate Bitcoin in the case of criminal offenses, redirecting the funds for public use. Advertisement
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As fraudulent actors continue to utilize crypto for their activities, Brazil has reportedly passed a new law that aims to mitigate criminal activities involving crypto in the country.
The new law, which was signed on Tuesday, has granted legal authorities in the country the permission to seize cryptocurrencies, especially Bitcoin, in criminal investigations.
Brazil to mitigate crypto crimes
The move comes as crypto adoption continues to grow across the global space, with Bitcoin gaining mainstream adoption, and scammers are increasingly hopping on the asset to execute their dubious activities.
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The new law particularly permits enforcement agencies to request court approval to freeze digital assets in cases when strong evidence has been provided for serious offenses like money laundering, organized crime operations or other illicit financial activities.
Authorities further disclosed that the major aim of the new law is to prevent criminals from moving funds quickly through decentralized networks like Bitcoin.
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Furthermore, the legislation permits the use of the confiscated cryptos for the good of the public.
As declared in the new law, the courts have been authorized to allow the early liquidation of the seized Bitcoin according to their discretion.
As such, crypto holdings that have been confiscated by law enforcement agencies could be converted into the country’s money or any fiat currency before a case is fully concluded, if necessary.
Upon the confirmation of the criminal acts, the proceeds can be used to strengthen Brazil’s public security.
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