Brazil House Passes Bill to Freeze Crypto, Raises Prison Cap to 10 Years

The bill was embedded in a wider anti-faction legislative package that also addressed videoconference use in legal proceedings and changes to appellate procedures. This suggests Brazilian lawmakers view crypto enforcement as part of organized crime fighting, not a standalone financial regulatory matter.

Brazil enacted a dedicated crypto regulatory law in 2023, and the central bank has been working on implementation rules. The new bill adds an enforcement dimension to that framework. The move comes as regulatory approaches to digital assets vary across Latin America. Brazil’s decision to place crypto-freezing powers within criminal enforcement legislation reflects the country’s concern with organized crime’s use of digital assets.

With the House vote concluded, the bill awaits presidential action. Published legislative records indicate the law was signed in March 2026, suggesting the measure has already moved through final enactment stages. Implementation details, including which agencies execute freeze orders and how exchanges must comply, will likely follow through executive decrees or central bank directives.

For crypto market participants serving Brazilian users, the legislation creates a new legal reality. Exchange operators may need systems capable of responding to judicial freeze orders. Brazil’s position as Latin America’s largest economy gives its legislative moves outsized regional significance.