Brazil’s federal government has introduced a new bill that would allow authorities to liquidate seized cryptocurrencies, including Bitcoin, before a criminal trial concludes, marking a major escalation in the country’s crackdown on organized crime. The measure is part of a larger “anti-faction bill” aimed at dismantling the financial operations of criminal groups by cutting off access to digital assets often used to evade oversight.
Signed by Ricardo Lewandowski, Brazil’s Minister of Justice and Public Security, the proposal has been sent to Congress under urgent consideration, requiring lawmakers to vote on it by December 18.
Cutting Off Criminal Funding
The government argues that seized crypto assets should not remain dormant or vulnerable to recovery efforts by criminal organizations while cases proceed through the courts.
By allowing a pre-trial sale, authorities can convert volatile digital holdings into cash, preventing groups from reclaiming or benefiting from them. Officials say the measure is intended to attack the financial backbone of factions that leverage cryptocurrencies for laundering, cross-border payments, and operational funding.
New Classification for Cryptocurrencies
The bill would classify cryptocurrencies in the same category as foreign currencies and financial securities, giving law enforcement broader authority to liquidate them early in the judicial process. This categorization also brings seized digital assets under the same treatment as other monetary instruments used in organized crime cases.
Part of a Wider Crackdown on Financial Crime
The proposal comes at a time when Brazil has intensified its efforts to regulate digital assets and clamp down on financial crime. Recent operations have targeted crypto-linked money-laundering networks, darknet transactions, and cross-border schemes tied to major criminal organizations.
The anti-faction bill represents one of the most aggressive steps yet in Brazil’s attempt to modernize its legal framework around crypto and organized crime.
Alignment With International Standards
The initiative closely aligns with recommendations from the Financial Action Task Force (FATF), which urges governments to treat virtual assets as a distinct asset class during asset recovery. FATF guidance emphasizes liquidating seized crypto early to minimize value loss and prevent criminals from exploiting price volatility or regulatory gaps.
By adopting these standards, Brazil positions itself alongside other jurisdictions modernizing their financial crime enforcement models to include digital assets.
