Brazil’s New Bill Bans Cryptocurrency Use by Convicted Organized Crime Members (2025 Update)

• Why Is Brazil Targeting Crypto in Organized Crime?
• How Will the Ban Be Enforced?
• The Bigger Picture: Brazil’s Crypto Regulation
• What’s Next for Brazilian Crypto Users?
• FAQs

Brazil is cracking down on crypto-enabled crime with a new bill (PL) that prohibits convicted organized crime members from using cryptocurrencies. The MOVE aims to curb illicit financial flows while sparking debates about privacy and regulatory overreach. Here’s what you need to know.

Why Is Brazil Targeting Crypto in Organized Crime?

Authorities argue cryptocurrencies have become the "go-to tool" for money laundering. In 2024 alone, Brazil’s Federal Police tracked over R$1.2 billion in crypto-linked illicit transactions, according to CoinMarketCap data. The PL specifically blocks access to exchanges and mandates wallet freezes for convicted offenders.

How Will the Ban Be Enforced?

The bill proposes:

• Mandatory KYC linking for all Brazilian exchange accounts (including BTCC and others)
• Real-time monitoring of blockchain transactions by tax authorities
• Prison sentences of 3-8 years for violations

Critics like economist Carla Gonçalves warn this could "push transactions deeper underground," citing similar laws in Japan that saw VPN usage spike 300%.

The Bigger Picture: Brazil’s Crypto Regulation

This follows 2023’s controversial "Crypto Framework Law." While the government claims it’s protecting citizens, blockchain analyst Marcos Ribeiro notes: "They’re treating crypto like a weapon rather than technology." The BTCC research team suggests the move may inadvertently boost privacy coins like Monero.

What’s Next for Brazilian Crypto Users?

Ordinary investors needn’t panic—the law targets only convicted criminals. However, exchanges now face stricter reporting requirements. As of October 2025, non-compliant platforms risk losing operating licenses.