President Luiz Inácio Lula da Silva signed law No. 15.358, permitting the sale of cryptocurrencies seized from criminal groups to fund public security.

Law overview

The legislation removes the requirement for seized digital assets to remain idle on cold wallets for extended periods and enables their conversion to cash through authorized procedures.

Authorities will be able to dispose of confiscated tokens and transfers of proceeds will follow established public finance rules and oversight mechanisms.

Allocation of proceeds

Funds obtained from sales are designated for procurement of modern equipment, specialized training of officers and financing intelligence operations against major cartels.

The law explicitly cites operations targeting groups such as PCC and Comando Vermelho among the priorities for allocated resources.

Penalties for encrypted tools

The reform increases prison sentences when encrypted messaging services or anonymity tools are used to commit crimes, applying enhanced penalties under criminal statutes.

Prosecutors and courts will assess the use of such technologies during investigations, and the new rules change sentencing guidelines accordingly.

Implementation and oversight

Details on liquidation procedures, responsible agencies and transparency requirements are to be defined in implementing regulations accompanying the law.

Legislators indicated that mechanisms will be introduced to ensure proceeds are tracked and spent exclusively on the specified public security measures.