Brazil moves forward that Bitcoin doesn’t even escape the jails of the judicial system. This is because the Court of Justice (STJ) failed to allow judges to order platforms such as Binance and Bitcoin markets, such as debtor freezes and transfers, without prior notice.
In itself, the third room of the Brazilian Court of Justice held yesterday unanimously that a judge could order a cryptocurrency exchange. Direct seizing of digital assets to resolve judicial obligations. The resolution equates with the traditional handling of funds in cryptocurrency bank accounts under the argument that many debtors use cryptoactive to avoid obligations.
The five pastors who make up the chamber – Humbert Martins, Nancy and Wright, Ricardo Villas Boasquava, Mula Ribeiro, and the judge called Carlos Sinimarchionatti – upheld the appeal presented by the creditors.
The incident occurred when creditors were unable to find funds in the debtor’s bank account through the Bacenjud system after winning the judicial process for education in a company that conducts Brasil Ltda. You can block traditional bank assets without prior notice. Considering this absence, the creditor turned to STJ. STJ gave a green light to extend the search to the exchange of Bitcoin and cryptocurrency.
Humberto Martins, the reporter of STJ, recalls that, according to STJ’s jurisprudence, the debtor’s interests must be processed at least in a taxable manner for the debtor, and according to STJ’s statement, creditors’ interests must be met through the prohibition, which requires seeking liquidation of unpaid debts.
Decisions pave the way Judges send offices to exchanges requesting information about balances Progress towards debtor lockdown.
Additionally, the National Judicial Council (CNJ) is already working on the development of a Cryptojud system, a tool similar to Bekenjude but specially designed. Track and confiscate your digital assets.
Minister Villas Bôas Cueva was aware of the technical challenges, but notably the lack of regulations on the cryptocurrency sector and the decentralized nature of Bitcoin, but insisted that “public institutions must adopt practical solutions” in the face of the country’s increasing use of cryptocurrency.
Legal Framework: Half Road Process
In Brazil, there are financial norms, but there are no concrete and complete regulations on digital assets (Federal Government) and judicial advances in integrating them into existing legal frameworks. Cryptocurrency works in the grey area. They are neither illegal nor fiat currency, but are recognized as livestock assets subject to declarations and current seizures. Congress continues to debate comprehensive laws, while judicial and tax authorities have established rules for the game.
The country’s “Cryptocurrency Legal Framework” was approved and approved by the government of Jer Bolsonaro on December 21, 2022. In addition to introducing criminal law changes to represent crimes related to cryptographic fraud, the Act establishes guidelines for the provision of virtual asset services and its regulations.
but, The legal framework for cryptocurrency has been partially implementedbecause its practical application relied on secondary regulations to be issued by the Central Bank of Brazil (BCB), designated as the leading regulatory body in the crypto sector.
After its in effect, the BCB began working on certain norms to enforce the law. Resolution BCB No. 359 was issued in December 2023. This establishes the initial rules for crypto-active companies and requires service providers (such as exchanges) to obtain prior permission to operate and meet governance requirements, money laundering prevention, and consumer protection. Additionally, a six-month transition period (until mid-2024) was given to ensure that already active companies would adapt to these criteria.
The law has made progress by legally recognizing cryptocurrencies as financial assets and establishing a basic framework, but its implementation has been progressively. Additionally, until April 2025, BCB continues to improve regulations, with some aspects still in the definition process, including detailed oversight of cross-border operations and full integration with the changing market.
The lack of complete regulation from the start has generated early criticism, such as those expressed in 2023 in an editorial article. The law was enacted “without immediate practical relevance.” Because there is no detailed standard.
Bitcoin Community Alarm
In any case, the STJ decision has turned on alarms for the Brazilian community, revolving around Bitcoin, and no responses are waiting. In X, an anonymous user warned:
«Locking stock market home balances is used as a tool immediately before indicating “crime” in accordance with state law. A simple battle between couples can peak with complaints about psychological violence and moral harassment. This will encourage Cryptoji to carry out “preventive actions” that block the balance of accounts owned by the defendant».
Comments suggest that The scope of Crypt Jud can go beyond the debtor and affect those with legal doubt. “You can see how this happens and stay exactly where you are. You can usually buy a replacement, wait for this to affect you, or update your strategy and move to the P2P market while you still have time,” the user added, urging Brazilians to rethink their exposure to centralized exchanges.
Other X users say it’s best to learn that your own responsibility is the most convenient way to protect your Bitcoin funds. Others point out that “the decision puts the entire cryptocurrency market under the judicial radar,” highlighting the difference between leaving funds on a centralized platform and being controlled by a personal wallet. The measure envisages discussions on security and autonomy in the current market under the magnifying glass of justice.
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