Brazil proposes to sell seized Bitcoin 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, handling them in the same manner as foreign exchange, checks, and securities. However, it remains unclear how to deal with the situation if the suspect is acquitted.

This move aims to combat the funding chains of criminal gangs and is part of the "anti-gang bill" that revises 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 sector, issuing new rules that require 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 classifies cryptocurrency activities under Brazilian foreign exchange and capital market laws.