Brazil proposes to sell seized bitcoins to weaken organized crime networks

According to CoinDesk, Brazilian President Luiz Inácio Lula da Silva submitted Bill No. 5.582/2025 to Congress, which authorizes financial institutions to liquidate cryptocurrencies even before the trial results are out, treating them similarly to foreign exchange, checks, and securities. However, it remains unclear how to handle cases where the suspect is acquitted.

This move aims to combat the funding chains of criminal gangs and is part of the "anti-gang bill" revising legislation on criminal organizations and criminal procedure law, targeting the financial infrastructure of criminal factions such as "Comando Vermelho." Meanwhile, the Central Bank of Brazil is advancing significant regulatory reforms in the cryptocurrency industry, issuing new rules requiring cryptocurrency companies to obtain licenses and hold capital reserves ranging from 10.8 million to 37.2 million reais based on their business activities. This regulation will take effect in February and will classify cryptocurrency activities according to Brazilian foreign exchange and capital market laws.