Brazilian President Proposes Bill to Legalize Immediate Sale of Seized Cryptocurrencies to Strengthen Measures Against Organized Crime

This week, Brazilian President Luiz Inácio Lula da Silva submitted Bill 5582 to Congress, which allows for the sale of cryptocurrencies such as Bitcoin (BTC) seized during criminal investigations before the outcome of the trial. This would treat cryptocurrencies similarly to foreign currencies, checks, and securities, permitting their conversion by financial institutions.

The bill is an urgent legislative item aimed at combating organized crime and must be voted on by Congress by December 18. The Brazilian government notes that there are 88 criminal organizations and militias operating within the country, with two of these organizations having cross-border activities resembling criminal holding companies. These groups are armed...