Brazil’s Chamber of Deputies, a federal legislative body, has passed a regulatory framework legalising cryptocurrencies as a payment method throughout the country. The law does not make cryptocurrencies legal tender.

Decentralized finance (DeFi) protocols Aave and Compound have implemented new safety features after an attempted short squeeze left the former with a relatively small amount of bad debt.

Coinbase’s non-custodial cryptocurrency wallet application, Coinbase Wallet, is dropping support for four major cryptocurrencies at the beginning of next year: XRP, Ethereum Classic, Stellar, and Bitcoin Cash.

Top stories in the Crypto Roundup today:

• Brazil Legalises Crypto as Payment Method
• DeFi Lending Protocols Cap Loans to Mitigate Risks
• Coinbase’s Non-Custodial Wallet to Drop Support for XRP, XLM, ETC, and BCH

Brazil Legalises Crypto as Payment Method

Brazil’s Chamber of Deputies, a federal legislative body, has passed a regulatory framework legalising cryptocurrencies as a payment method throughout the country. The law does not make cryptocurrencies legal tender.

The bill, which still needs to be signed by Brazil’s president to be enacted, will include digital currencies and air mileage programs in the definition of payment methods that are under the supervision of its central bank.

After being passed into law, the government’s executive branch will decide which office will be in charge of its supervision. Tokens that will be considered securities will remain under the jurisdiction of the Brazilian Securities and Exchange Commission (CVM).

The law also enables the creation of licenses for cryptocurrency exchanges, custody and management platforms. Moreover, the law will require exchanges to make a clear distinction between company and user funds.

DeFi Lending Protocols Cap Loans to Mitigate Risks

Decentralized finance (DeFi) protocols Aave and Compound have implemented new safety features after an attempted short squeeze left the former with a relatively small amount of bad debt.

Aave has executed a proposal to freeze the markets for 17 different assets in the Aave V2 lending pool on the Ethereum network, including for Yearn.Finance (YFI), Curve DAO (CRV), Gemini Dollar (GUSD), Maker (MKR), and 1inch (1INCH).

Similarly, members of the Compound DAO approved borrow caps for 10 tokens, including the protocol’s versions of Wrapped Bitcoin (WBTC), Uniswap (UNI), Chainlink (LINK), and Aave (AAVE).

The moves come after Avraham Eisenberg, the trader responsible for hacking Mango Markets in October, has borrowed 40 million CRV on Aave in a bid to short the tokens.

Both DeFi protocols account for a significant portion of the total value locked in the DeFi ecosystem, with Aave having $3.7 billion and Compound $1.7 billion in assets locked.

Coinbase’s Non-Custodial Wallet to Drop Support for XRP, XLM, ETC, and BCH

Coinbase’s non-custodial cryptocurrency wallet application, Coinbase Wallet, is dropping support for four major cryptocurrencies at the beginning of next year: XRP, Ethereum Classic, Stellar, and Bitcoin Cash.

According to a notice posted in the help section of Coinbase’s website, the Coinbase Wallet will be dropping the aforementioned cryptoassets due to “low usage.” The notice adds:

“This does not mean your assets will be lost. Any unsupported asset that you hold will still be tied to your address(es) and accessible through your Coinbase Wallet recovery phrase. In order to view or transfer these assets after January 2023, you will need to import your recovery phrase on another non-custodial wallet provider that supports these networks.”

Coinbase Wallet can only store “supported cryptocurrencies and access dapps on supported networks.”

State of the Crypto by Top Tier Exchange Volume

Build your project with CoinDesk Data

Terms | Privacy

13 Charles II St, SW1Y 4QU

London, UK

This email may include advertisements by third parties. None of the advertised or promoted products and services have been verified or approved by us and this email is not any endorsement by us of the third party or of their products or services.