The government of Liechtenstein is planning to accept Bitcoin payments for state services, in a proposal that will see received BTC payments be immediately converted into Swiss francs, the country’s official currency.

Cryptocurrency exchange Bittrex has filed for Chapter 11 bankruptcy protection in the District of Delaware. The exchange estimated it had more than 100,000 creditors, between $500 million and $1 billion in assets, and between $500 million and $1 billion in liabilities.

The decentralized organization behind the popular cryptocurrency-backed DAI stablecoin, MakerDAO, has launched a decentralized finance (DeFi) lending platform meant to enhance decentralized borrowing options for DAI, called Spark.

Top stories in the Crypto Roundup today:

• Liechtenstein to Accept Bitcoin for State Services
• Crypto Exchange Bittrex Files Chapter 11 Bankruptcy Amid Regulatory Woes
• MakerDAO Launches Spark, a DeFi Lending Platform for DAI

Liechtenstein to Accept Bitcoin for State Services

The government of Liechtenstein is planning to accept Bitcoin payments for state services, in a proposal that will see received BTC payments be immediately converted into Swiss francs, the country’s official currency.

The announcement was made by Liechtenstein's Prime Minister Daniel Risch through an interview with German business daily Handelsblatt. Risch, who doubles as the nation’s finance minister, showed openness to investing state reserves in cryptoassets in the future.

The debt-free country saves as much as three times its 900 million franc (around $1 billion) annual budget, and invests the money in securities. According to the finance ministry’s figures cited by Handelsblatt, the state has a substantial 2.23 billion Swiss francs (about $2.51 billion) in reserves.

Risch acknowledged the inherent risks associated with cryptocurrencies, stating, "Cryptocurrencies like Bitcoin are still too risky. But this assessment can of course change."

Crypto Exchange Bittrex Files Chapter 11 Bankruptcy Amid Regulatory Woes

Cryptocurrency exchange Bittrex has filed for Chapter 11 bankruptcy protection in the District of Delaware. The exchange estimated it had more than 100,000 creditors, between $500 million and $1 billion in assets, and between $500 million and $1 billion in liabilities.

The bankruptcy filing encompasses its Seattle-based parent company Bittrex Inc., two Maltese entities, and affiliated entity Desolation Holdings LLC. However, Bittrex Global GmbH, the Liechtenstein-based global exchange arm, is excluded from the filing.

The bankruptcy proceedings come on the heels of the U.S. Securities and Exchange Commission (SEC) charging Bittrex and its co-founder and former CEO William Shihara with securities violations last month.

The SEC accused Bittrex Inc. and Bittrex Global of operating an illegal securities exchange. In addition, the exchange settled for about $29 million after facing Bank Secrecy Act violations charges from the OFAC and FinCEN of the U.S. Treasury last October.

The OFAC features as the leading creditor in Bittrex's bankruptcy filing, with Bittrex attributing a $24.2 million claim to the agency. The next largest creditor is a cryptocurrency wallet, claiming $14.5 million.

MakerDAO Launches Spark, a DeFi Lending Platform for DAI

The decentralized organization behind the popular cryptocurrency-backed DAI stablecoin, MakerDAO, has launched a decentralized finance (DeFi) lending platform meant to enhance decentralized borrowing options for DAI, called Spark.

Spark is essentially a software fork of Aave's Version 3, the leading lending protocol. It incorporates direct lending capabilities within MakerDAO's existing framework and allows users to secure DAI loans using assets like ether (ETH), staked ether (stETH), and even DAI itself.

This is a departure from MakerDAO's primary mechanism, which exclusively enables users to generate new DAI as overcollateralized debt. The new DeFi protocol offers DAI loans at an initial annual rate of 1.11%. It introduces a customized interest rate model, in which borrowing rates are determined by governance members through on-chain voting, contrasting with the supply-demand dynamics that determine rates in protocols like Aave.

Furthermore, Spark will be integrated with MakerDAO's Peg Stability Module, allowing users to instantly swap DAI for USDC at a 1:1 ratio.

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.