RIO DE JANEIRO, BRAZIL – The Brazilian cryptocurrency exchange Mercado Bitcoin announced on January 21 that it is preparing an expansion in Latin America that targets the markets of Chile, Mexico and Argentina. Operations in these countries could begin in 2021 after attracting investments of about US$37 (R$200) million.
The exchange house highlighted that the regulatory culture in these three nations is similar to that of Brazil, so it would only be a matter of time before starting activities. The intention of Mercado Bitcoin is to develop a local ecosystem like the one that exists in the United States, according to Reinaldo Rabelo, executive director of the company.
“For that, we want to be one of the five largest digital exchanges in the world. Today, we are already the largest stock exchange in Latin America and we operate almost exclusively in Brazil. Now, we will also take into account the other markets such as Chile, Mexico and Argentina”, added Rabelo.
The Bitcoin Market internationalization project was on the company’s work agenda for some years. However, since its foundation in 2013, operations were basically concentrated in the Brazilian market. Now, with the new round of investment, the aspirations are higher.
Currently Mercado Bitcoin offers support to 2.2 million operators and is he estimates that after the expansion it will serve about three million traders. In 2020 the company reached a total volume of operations of R$6.4 billion or about US$1.17 billion.
According to figures from CoinMarketCap, the pairs with the most commercialization on the exchange are: ethers against Brazilian reals, with a daily volume of US$2.5 million, and bitcoin against the national currency of Brazil, which represents other two million dollars every 24 hours. In total, adding the rest of the operations, the exchange house handles a daily volume of US$5.3 million.
Growth and new products related to bitcoin
The rise of bitcoin on a global scale, and particularly in Brazil, has boosted trading on the exchange during January. The company highlighted that in the first month of the year it already reached more than 50% of all the sales achieved last year.
The exchange’s development plan also points towards the consolidation of Bitrust, an insurance platform qualified to offer guarantees to institutional investors, and Meubank, a wallet for cryptocurrencies and collectibles.
Among the companies and funds that participated in the investment round, the following stand out: GP Investimentos, Parallax Ventures, Évora Fund (Zé Bonchristiano), HS Investimentos Private Investment Fund (FIP), Plural Bank and Gear Ventures.
Bitcoin Market is one of the main cryptocurrency exchange houses in Latin America, by its volume of sales. In the past, the company has faced difficulties due to the closure of accounts by banks that it has accused of anticompetitive conduct, according to CriptoNoticias. Cryptocurrencies redeemable on the exchange include bitoin, bitcoin cash, ether, Chainlink, litecoin, Pax Gold, XRP, Chiliz, USD Coin, and Wibx.