Continued ecosystem changes amidst Genesis trouble

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Brazil passed a law that legalizes cryptocurrency as a method of payment throughout the country. Although, it has not designated Bitcoin as legal tender. The regulatory framework was approved by Brazil’s Chamber of Deputies. The document was signed under the code PL 4401/2021 allowing the introduction of virtual currencies and frequent travellers rewards from airlines. The law only requires the signature of the President of the Republic to be approved gives legal permission to use crypto currencies as method of payment for goods and services but does not grant the status of legal tender. Brazil is currently the country with the most cryptocurrency ETFs in Latin America. Major banks and brokers of the country offers some exposure to cryptocurrency investments or similar facilities like toker or custody offerings. One of Brazil’s largest banks, Itaú, is working to tokenize its future pack of services to investors. The entity or office in responsible for supervising the matter will be decided by the executive branch of the government (the president and its ministers) after the law is put into effect; only tokens classified as securities fall under the domain of the CVM, Brazil’s version of the SEC. This new law will only apply to tokens that are governed by the CVM, Brazil’s version of the SEC. The CVM and the nation’s own Central Bank have been the government organisations most active in this area up until this point.

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Coinbase delisted a number of major cryptocurrencies including the seventh largest digital asset, XRP from its wallet app. The firm announced that from January 23, it would not support Bitcoin Cash (BCH), Ethereum Classic (ETC), Stellar (XLM), and Ripple’s XRP on Coinbase wallet. The reason stated by the firm was “due to low usage” of the assets on the platform. That means users will not be able to buy, sell, send, or receive the assets via the app but will still be able to access the coins and tokes via its exchange. In spite of the assets being removed from Coinbase’s wallet product, consumers would still be able to recover them through their recovery procedures. 

To stop the crypto brokerage from having to file a bankruptcy, Genesis Global Trading’s creditors have hired lawyers, reported by Bloomberg. According to the people, some creditors are dealing with the law firm Proskauer Rose, while others have hired Kirkland & Ellis. In response to the failure of FTX, the lending division of the crypto investment bank froze redemptions and new loan originations on November 16, Interim CEO Derar Islim informed customers over the phone, according to a report from CoinDesk at the time.

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