Brazil Proposes Selling Seized Bitcoin (BTC) to Undercut Organized Crime Networks
Brazil's government proposed a law to allow the sale of seized cryptocurrencies like Bitcoin to target organized crime finances.Summary
The Brazilian government, under President Luiz Inácio Lula da Silva, has proposed Bill 5.582/2025, which would authorize financial institutions to liquidate cryptocurrencies seized during criminal investigations, treating them similarly to foreign currencies and securities. This measure is part of a broader "anti-faction bill" aimed at dismantling the financial infrastructure of powerful gangs like Comando Vermelho. The proposal comes shortly after a deadly police raid in Rio's favelas targeting the same criminal organization. The law would allow liquidation even before trial outcomes, though the fate of assets if suspects are acquitted remains unclear. This initiative coincides with the central bank's regulatory overhaul, which requires crypto companies to be licensed and hold capital reserves, classifying many crypto activities under existing foreign exchange laws.
(Source：CoinDesk)