Brazilian President Luiz Inรกcio Lula da Silva introduced the Anti-Faction Bill proposing the sale of seized cryptocurrencies to counter organized crimeโs financial operations.
The initiative aims to destabilize criminal networks financially and may cause short-term volatility in Brazilโs $318.8 billion crypto market.
Brazil targets organized crime with pre-trial sale of seized cryptocurrencies, impacting Bitcoin and Ethereum. President Lula introduces the Anti-Faction Bill.
Brazil introduces Anti-Faction Bill 5.582/2025, aimed at combating organized crime through pre-trial sale of seized cryptocurrencies. The legislation, spearheaded by President Lula, targets criminal networks using digital assets.
Anti-Faction Bill Targets Organized Crime with Crypto Sales
President Luiz Inรกcio Lula da Silva submitted the bill, focusing on criminal groups like Comando Vermelho. The proposal enables the liquidation of digital currencies such as Bitcoin (BTC) and Ethereum (ETH) before trial verdicts.
Brazilian Institutions Enabled to Sell Seized Crypto Pre-Trial
Brazilโs financial institutions can sell crypto assets of crime organizations before trial completion. This move affects major altcoins and can lead to market shifts. Liquidity impact could influence trading dynamics of BTC and ETH.
The Central Bank of Brazil enforces new regulations for crypto firms, mandating capital reserves and licenses by February 2026. Such measures may cause market volatility but align with global asset seizure practices.
STJ Defines Crypto as Seizable in Brazil
Previously, cryptocurrency seizures in Brazil were limited, but the STJ now defines crypto as a seizable asset. This approach resembles U.S. Marshalsโ Bitcoin auctions, though Brazilโs bill is more aggressive.
Experts, referencing data trends, suggest that pre-emptive liquidations will serve as a blueprint for global jurisdictions. The Brazilian model could influence future regulatory frameworks worldwide.
โWe are taking decisive action to combat organized crime by liquidating its illicit assets swiftly and effectively.โ โ Luiz Inรกcio Lula da Silva, President of Brazil
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