Brazilian President Luiz Inácio Lula da Silva has introduced Bill No. 5.582/2025 to Congress, proposing a move that would allow financial institutions to seize cryptocurrencies during legal proceedings before verdicts are reached. This approach aligns with how foreign exchange, checks, and securities are handled, but the bill lacks guidance for situations where a suspect is acquitted. The initiative forms part of broader efforts to combat the financial networks of criminal organizations, including groups like ‘Comando Vermelho’. In tandem with this bill, Brazil’s Central Bank is enacting significant regulatory changes in the cryptocurrency sector. These regulations mandate that cryptocurrency companies obtain licenses and maintain capital reserves ranging from 10.8 million to 37.2 million Brazilian reais based on their operational activities. These regulations will become effective in February, aligning cryptocurrency businesses with Brazil’s foreign exchange and capital markets frameworks.