The post Brazil Launches Nationwide Crypto Tracking to Fight Fraud and Money Laundering appeared first on Coinpedia Fintech News
On June 17, 2025, the National Secretariat of Public Security (SENASP) under Brazil’s Lula Government announced a major initiative to track and monitor cryptocurrency transactions across the country. This move is aimed at boosting financial transparency and cracking down on crypto-related crimes such as money laundering, drug trafficking, and financial fraud. The initiative will run for 36 months and opens for proposals starting July 4, 2025.
Brazil’s New Crypto Surveillance Tool
The government is seeking advanced crypto tracking software capable of identifying suspicious transactions across major blockchain networks, including:
- Bitcoin
- Ethereum
- Ethereum Classic
- Tron
- Binance Coin
- Dash
- Dogecoin
- XRP
- Polygon
- Avalanche
This tool will monitor blockchain activity to identify wallet addresses, IPs, and geographic locations involved in questionable transactions.
Key Features of the Crypto Tracking Initiative
- Detects and responds to suspicious wallet activity
- Enhances crypto security and blockchain transparency
- Supports criminal investigations in 15 major Brazilian capitals
- Promotes crypto adoption through a secure environment
- Boosts the country’s fintech innovation sandbox
Installation Locations
The crypto surveillance software will be rolled out in 15 of Brazil’s 27 capitals. Some key installations include:
- Brazilia (DF) – 9 units
- Curitiba (PR) – 9 units
- Aracaju (SE) – 4 units
- Manaus (AM) – 2 units
- Natal (RN) – 2 units
- Boa Vista (RR) – 2 units
- Others include Florianopolis, Cuiaba, Palmas, Porto Alegre, and more.
Impact on Brazilian Crypto Companies
All Brazilian crypto platforms must stay compliant with the new law. They are required to register with regulatory authorities and continuously update their software over the next three years. The objective is to foster innovation while ensuring a secure crypto ecosystem.
Brazil’s Upcoming Crypto Tax Reform?
As Brazil tightens its grip on crypto security, the government is also considering a new crypto tax model. Under the proposed policy, all crypto trades may be taxed at 17.5%, though this regulation is still under discussion.
The urgency follows a reported 30% drop in Bitcoin interest earlier this year due to regulatory uncertainty. Lula’s administration aims to restore investor confidence by reinforcing crypto protection measures before finalizing tax laws.
Conclusion
Brazil’s bold step toward implementing real-time crypto tracking and tax reform reflects the government’s commitment to making the country a safer place for digital finance. As blockchain adoption rises, these developments are expected to shape the future of crypto regulation in Latin America.
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FAQs
Brazil’s new crypto monitoring aims to enhance safety by cracking down on illicit activities like fraud and money laundering. While increasing transparency, it primarily targets suspicious transactions, potentially making the environment more secure for legitimate users.
Yes, Brazilian crypto companies will face stricter compliance requirements, including mandatory registration with regulatory authorities and continuous software updates. They’ll also need to meet minimum capital requirements, which could pose challenges for smaller firms.
Despite the new monitoring and tax discussions, Brazil is generally considered crypto-friendly. It has legalized cryptocurrencies as payment methods, and the government aims to foster innovation while ensuring a secure and regulated digital asset ecosystem.
Brazil has recently imposed a flat 17.5% tax on all digital asset profits for individuals, regardless of transaction size or where the assets are held (including self-custody and foreign exchanges). This replaces a previous exemption for smaller monthly sales.
