A Brazilian court has ruled that cryptocurrencies can be seized by judges to repay creditors, marking a significant shift in the legal treatment of digital assets in the country. The Third Panel of the Brazilian Superior Court of Justice unanimously agreed to allow judges to send notifications to cryptocurrency brokers to freeze and seize the assets of account holders who owe money. Although cryptocurrencies are not considered legal tender, the court acknowledged their use as payment and a store of value. This decision aligns cryptocurrencies with existing laws that permit the freezing of bank accounts for debt recovery. Brazil's regulatory framework for digital assets is still developing, and while there are bills recognizing cryptocurrencies as a form of value, formal regulations are lacking. Despite this, the country is witnessing a surge in crypto adoption, ranking second in Latin America for crypto value received, just behind Argentina. As Brazil moves towards more regulatory clarity, developments continue to unfold, affecting both established crypto exchanges and emerging market trends.

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