Brazilian crypto exchange Mercado Bitcoin will expand into Mexico this year, CEO says – Reuters.com

A bitcoin representation is seen in an illustrative photo taken at the Maison du Bitcoin in Paris, France, June 23, 2017. REUTERS/Benoit Tessier

SAO PAULO, July 21 (Reuters) – Mercado Bitcoin, the Brazilian crypto exchange backed by SoftBank, is set to enter the Mexican market by the end of the year, as part of a plan to expand elsewhere in America Latin America, its chief executive told Reuters.

“Certainly in the second half of the year we start operating in Mexico,” Mercado Bitcoin CEO Reinaldo Rabelo said in an interview, adding that talks for regulatory approval in the country are in their final stages. final phase.

Rabelo said the move would be through an acquisition, mirroring how Mercado Bitcoin holding company 2TM entered Portugal earlier this year when it bought Lisbon-based exchange CriptoLoja. Read more

He did not provide further details on the Mexican deal, which he said is now awaiting regulatory approval, but noted that Mercado Bitcoin is not necessarily buying another crypto exchange to launch in the country.

The move comes about a year after the company raised $200 million from SoftBank Group Corp’s Latin America fund (9984.T), hoping to use the funds to expand across the continent. Read more

But Rabelo said the company is “now looking at the Latin American market with a bit more caution due to the macroeconomic scenario.” Currently, in the region, Mercado Bitcoin operates only in Brazil.

The surge in the Mexican market comes amid a still unfavorable environment for crypto assets amid regulatory issues and rising interest rates.

Mercado Bitcoin’s platform suffered a drop in trading volumes “quite similar” to those seen in the crypto space in general, he said, declining to provide updated numbers. In 2021, the company reported a trading volume of 40 billion reais ($7.31 billion).

Rabelo expects the so-called crypto winter to continue chilling investors through the end of 2023, with a slowing market and fewer funds available.

“This low tide will pass and we will experience other moments of excitement,” he said.

Reporting by Paula Arend Laier; Written by Peter Frontini; Editing by Chizu Nomiyama

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