Bitcoin News Today: Coinbase's 'DeFi Mullet' Aligns with Brazil's Crypto Regulations

Coinbase (COIN) has launched decentralized exchange (DEX) trading in Brazil, marking a significant expansion of its "everything app" strategy and aligning with the country's evolving regulatory landscape. The feature, known as "DeFi Mullet," grants Brazilian users access to over 10,000 tokens via platforms like Uniswap and Aerodrome, all within the Coinbase app. This move allows users to trade Base-native tokens immediately after minting, bypassing the need to navigate unfamiliar decentralized protocols according to reports. The DEX integration is non-custodial, enabling users to manage trades through self-custody wallets without incurring network fees as per research.

The rollout coincides with Brazil's central bank imposing stringent new rules on crypto firms, requiring licensing, international transaction reporting and capital thresholds of up to $7 million. These regulations, which came into effect in mid-2025, place crypto activities under the country's foreign exchange and capital markets regime, giving firms nine months to comply according to data. Foreign platforms like Coinbase must now establish local entities to operate in Brazil, a requirement that aligns with the central bank's broader effort to integrate crypto under banking-style oversight.

Brazil's regulatory environment also includes a 17.5% tax on crypto gains above a monthly threshold and expanded reporting requirements for cross-border transactions. Authorities aim to close loopholes used to evade customs duties, with estimates suggesting over $30 billion in annual imports may have been conducted via stablecoin transfers. Meanwhile, lawmakers have proposed bills to exempt long-term crypto holders from taxes, reflecting growing political debate over digital-asset regulation in one of the world's largest crypto markets as research indicates.

Coinbase's DEX feature is part of its broader vision to become a one-stop financial platform, offering services ranging from tokenized stocks to stablecoin adoption via Circle's USDC according to reports. The company has also bolstered its Bitcoin treasury, adding 2,772 BTC in Q3 2025 to hold a total of 14,548 BTC, valued at $1.3 billion. Despite these strategic moves, Coinbase's stock has underperformed in 2025, falling 25.2% to $257.29 over the past month amid broader crypto market declines.

The expansion into Brazil comes as crypto markets grapple with volatility. Bitcoin briefly erased its 2025 gains, dropping to $93,029 in early November while XRP fell 4.3% despite the launch of a U.S. spot ETF according to analysis. Analysts attribute the selloff to profit-taking, macroeconomic uncertainty, and low liquidity, with the Fear & Greed Index hitting a 10-month low.