Brazilian President Luiz Inácio Lula da Silva has introduced Bill 5.582/2025 to Congress, proposing the sale of seized cryptocurrencies to disrupt organized crime networks. The bill allows financial institutions to liquidate digital assets before trial outcomes, aligning their treatment with foreign exchange and securities. This initiative is part of the broader "Anti-Faction Bill," aimed at dismantling the financial operations of criminal groups like "Comando Vermelho." In tandem with this legislative push, the Central Bank of Brazil is advancing regulatory reforms in the cryptocurrency sector. New rules mandate that crypto companies secure licenses and maintain capital reserves ranging from 10.8 million to 37.2 million reais, based on their business activities. These regulations, effective from February, will categorize cryptocurrency operations under Brazilian foreign exchange and capital market laws.