A Major Economy Plans to Sell All the Bitcoin and Altcoins It Has Seized – Here Are the Details

The Brazilian government has introduced a bill that would allow the sale of Bitcoin and other crypto assets seized during criminal investigations, in a new step in the fight against organized crime.

Bill 5.582/2025, submitted to Congress by President Luiz Inácio Lula da Silva, authorizes financial institutions to liquidate cryptocurrencies before the conclusion of a case. This would be done in the same manner as is currently applied to foreign currency, checks, and securities. However, it is not yet clear what will happen to these assets if the defendants are later acquitted.

Authorities stated that the move targets the financial resources of criminal organizations, explaining that the bill is part of an “anti-faction bill” package. The bill aims to amend Brazil's Criminal Procedure Code and organized crime laws to undermine the financial infrastructure of groups like Comando Vermelho, one of the country's most powerful gangs.

This development parallels crypto regulatory reforms being implemented by the Brazilian Central Bank. The central bank announced new regulations that will take effect in February. Under these regulations, crypto companies operating in the country must obtain a license and hold capital reserves between 10.8 million and 37.2 million reais (approximately $2 million to $7 million).

The new rules bring cryptocurrency activities under the country's foreign exchange and capital markets laws. They also impose reporting requirements for international transactions, stablecoin payments, and transfers to personal wallets. Each foreign currency transaction will have a $100,000 cap.