Brazil recommends selling Seized Bitcoin (BTC) to break up organized crime networks
The Brazilian government has proposed a law to allow the sale of bitcoin and other cryptocurrencies seized during criminal investigations at a time when the country appears to be cracking down on organized crime.
Bill 5.582/2025sent to Congress by President Luiz Inácio Lula da Silva, will allow financial institutions to liquidate cryptocurrencies even before the test results, such as foreign currencies, checks and securities are treated. What will happen if the suspects are eventually released is unclear.
Officials say the measure is intended to hit gangs where it hurts: their wallets, and is part of a broader “anti-faction bill” that changes the law on criminal organizations and Brazil’s Code of Criminal Procedure. It is aimed at the financial infrastructure of gangs such as Comando Vermelho, one of the country’s strongest criminal factions,
The timing of the proposal is remarkable. It arrived day after a basic police operation Rio’s favelas left 121 people dead, most of them said to be gang members, in what is the country’s latest police raid.
The authorities said that the targeting of leaders of Comando Vermelho and involved more than 2,500 officers.
The push to liquidate seized crypto assets unfolds alongside a Major regulatory overhaul by the Central Bank of Brazil. The Central Bank has issued new rules that require crypto companies to be licensed and hold capital reserves ranging from 10.8 million ($ 2 million) to 37.2 million reais, depending on their activities.
The rules, which will take effect in February, classify a wide range of crypto activities under Brazil’s capital and exchange laws.
They require companies to report international transactions, including payments and transfers of StableCoin and transfers to self-wallets, and place a $100,000 cap on each transaction involving foreign exchange.
The anti-faction bill is under urgent consideration in Congress and must be voted on by December 18.
