MercadoBitcoin.com, Latin America’s largest cryptocurrency exchange, is expected to be available in Mexico by the end of 2022.
Waiting for regulatory approval, Mercado Bitcoin CEO Reinaldo Rabelo told Reuters that the expansion will take place through the acquisition.He added that this strategy reflects the way Mercado Bitcoin Holding company 2TM entered Portugal earlier this year when it acquired the Lisbon-based exchange CriptoLoja.
He didn’t share any further details, but said the deal “doesn’t necessarily buy another crypto exchange to launch domestically.”
According to a recent report, 2TM and Coinbase have ended discussions on the crypto exchange operators listed on Nasdaq to buy Brazilian unicorns.
The two companies did not share the financial details of the acquisition, but 2TM was valued at around $ 2.2 billion in December after a recent $ 50 million round of funding. A SoftBank-backed Brazilian company also refused to comment on the size of the transaction because of its nondisclosure agreement.
Headed by Daniel Cunha, 2TM is the second Latin American crypto-focused unicorn after Bitso and its subsidiary Mercado Bitcoin, with nearly 3.5 million customers. According to its own statistics, trading volumes on crypto exchanges reached $ 7 billion last year, surpassing totals in the first seven years. The Brazilian company raised $ 250 million In two rounds of financing in 2021 led by SoftBank Group Corp. of Japan.
Part of 2TM’s investment includes a major NFT curation and collection group, Fingerprints DAO’s investment in US $ PRINTS tokens, holding approximately 20,000 ETH worth of NFTs. Founded by Gustavo and Mauricio Chamaty, the crypto company was the first company in the world to tokenize public debt assets in 2019.
Brazilians haven’t missed the crypto boom
The move will take place months after Coinbase has launched a strategy to build a technology hub in Latin America. Following this acquisition, Coinbase’s next step is to expand outside Brazil and find acquisitions in Chile, Colombia, Mexico and Argentina.
Brazilians haven’t overlooked cryptocurrency trends, and the country has been a hive in crypto-related activities. Within Latin America, the country was the mastermind of cryptocurrencies, both on the regulatory and development sides. Currently, the national financial oversight agency, CVM, prohibits regulated investment funds from trading in the virtual asset class.
Brazil’s move towards cryptocurrency regulation came one step closer last year after the national parliament set up a committee to review the issue. Older legislation allows cryptocurrency exchanges and other companies acting as intermediaries to voluntarily provide data about their clients, but rejects the authorities’ request to hand over information after the new legislation is introduced. Or you cannot appeal.