Crypto News Recap: Brazil Legalizes Bitcoin Payments, BlockFi Bankruptcy, BlackRock Tokenization Nov 2022

A lot has been going on in the crypto market throughout November. In this crypto news update, we’ll take a look at some of the most notable developments, including Brazil legalizing Bitcoin payments, BlockFi declaring bankruptcy, and BlackRock declaring tokenization is the next generation for markets.

Brazil Legalizes Bitcoin Payments

Although Brazil hasn’t gone as far as El Salvador in making Bitcoin legal tender, the country passed a law that legalized cryptocurrency payments throughout the country. The law marks a big moment for Bitcoin and other cryptocurrencies, which can now be used throughout Brazil as an alternative payment method to the traditional finance system.

The law has passed the Chamber of Deputies of Brazil (a federal legislative body) and awaits a signature from the president of Brazil to be enacted. Tokens are currently considered securities in Brazil, meaning that supervision of the law and its enactment will likely fall into the hands of the Brazilian Securities and Exchange Commission.

The law is considered very positive from a cryptocurrency adoption perspective. It shows that despite the tumultuous times in the crypto industry, countries are moving forward in regulating the industry and shaping the future of crypto.

BlockFi Declares Bankruptcy

Popular cryptocurrency lender BlockFi has filed for Chapter 11 bankruptcy protection. The announcement comes a few weeks after crypto giant FTX filed for bankruptcy, showcasing the ripple effects of the collapse. BlockFi said its liquidity crisis was mainly due to its exposure to FTX through assets held on the FTX platform that are now locked and its loans to Alameda Research, a crypto trading firm affiliated with FTX.

A quick reminder that Netcoins, through its parent company Bigg Digital Assets, has reported no exposure to FTX, the FTT token, or Alameda research. Additionally, Netcoins does not lend out customer assets, so you can keep calm knowing that the assets you hold on the platform are securely stored and ready to trade, spend, or withdraw at a moment’s notice.

BlackRock Tokenization

Regarding use cases in the crypto industry, asset tokenization has been one of the hottest topics in recent years; especially with the rise of NFTs, which aim to tokenize various art, music, images, or collectibles, making them available to trade directly on the blockchain.

BlackRock, one of the world’s leading providers of investment, advisory and risk management solutions, recently expressed its support for tokenization and its future. According to the company’s CEO Larry Fink, “The next generation for markets, the next generation for securities, will be tokenization of securities.” He says that security tokenization carries many positives, including instantaneous settlement and reduced fees, some of the main value propositions that the crypto industry as a whole presents.

The comments mark a big moment for the crypto industry as BlackRock is a company that deals directly with securities regularly, so to hear their support for the tokenization of stocks, bonds, and more is a big step in the right direction for the cryptocurrency industry, which aims to revolutionize the way finance is done.

Conclusion

November has been a fairly notable month in crypto. Brazil making massive strides in crypto regulation, BlockFi declaring bankruptcy, and BlackRock showing support for tokenization shows that crypto continues to move forward and progress toward mass adoption no matter industry noise. Make sure to stay tuned to the Netcoins blog to keep up to date with the most recent crypto news!

Looking to buy and sell Bitcoin? Netcoins is Canada’s first publicly owned crypto trading platform to be fully regulated. Simply create an account with Netcoins, fund it with an e-Transfer (more funding options available) and head to the trade page to buy BTC or any one of the over 30 cryptocurrencies on the platform. Sign up today!