A Bold Move Toward Blockchain Oversight
On June 17, 2025, Brazil’s National Secretariat of Public Security (SENASP), under President Lula’s leadership, revealed a new 36-month plan to monitor cryptocurrency activity across the country. Starting July 4, the government will begin accepting bids from companies to supply sophisticated software capable of tracking crypto transactions and identifying illicit behavior.
This initiative is designed to strengthen enforcement against financial crimes, including money laundering and fraud, by increasing transparency across major blockchain platforms.
What the Program Covers
Brazil’s plan introduces a comprehensive monitoring system with broad technical and geographical reach:
- Wide blockchain tracking: The system will monitor top cryptocurrencies like Bitcoin, Ethereum, Ethereum Classic, Tron, Binance Coin, Dash, Dogecoin, XRP, Polygon, and Avalanche.
- High-tech analytics: Authorities will use tools such as wallet-to-IP matching and geo-location data to uncover suspicious activity.
- National deployment: Fifteen of Brazil’s 27 state capitals—including Brasilia, Curitiba, Manaus, Aracaju, and Natal—will host the system’s rollout.
- Platform compliance: All crypto platforms operating in Brazil must register with regulators and ensure real-time updates throughout the project’s three-year span.
Why This Matters
The surveillance plan is part of Brazil’s broader push to integrate cryptocurrency into its legal and financial systems responsibly. Officials aim to:
- Boost law enforcement tools: Crypto has been tied to drug trafficking, scams, and other crimes. This move gives police better tracking capabilities.
- Promote trust and innovation: With tighter oversight, Brazil hopes to encourage secure fintech development and position itself as a reliable hub for digital assets.
- Prepare for potential tax reforms: Lawmakers are also weighing a 17.5% tax on crypto trades, although details are still being debated.
Balancing Innovation with Oversight
Brazil’s proactive stance places it ahead of many nations still grappling with how to regulate crypto. While supporters see it as a necessary step to curb misuse, critics warn it could stifle innovation and infringe on privacy. This follows a landmark court ruling against a crypto-based Ponzi scheme, which marked a turning point in the country’s crackdown on digital fraud.
As Brazil rolls out this ambitious plan, its approach could set a precedent for other nations seeking to blend blockchain growth with regulatory control.
