SoftBank-backed Brazilian crypto exchange Mercado Bitcoin will enter Mexico by the end of this year as part of a plan for expansion elsewhere in Latin America. This was confirmed by its chief executive to Reuters.
Reinaldo Rabolo, CEO of Mercado Bitcoin, stated that Mexico will be open for business in the second half-year. He also said that the talks to obtain regulatory approval are at their final stages.
Rabelo stated that the acquisition will take place in the same way that Mercado Bitcoin’s holding firm 2TM entered Portugal earlier in the year, when it purchased CriptoLoja, a Lisbon-based exchange.
He didn’t provide any further details about the Mexican deal. However, he noted that Mercado Bitcoin does not necessarily buy another cryptocurrency exchange to launch in Mexico.
This move comes one year after SoftBank Group Corp raised $200 million from its (9984.T.) Latin America fund. The company hopes to use the funds for expansion across the continent. read more
Rabelo stated that the firm is “looking at Latin American markets a bit more cautiously because of the macroeconomic situation.” Mercado Bitcoin is currently only present in Brazil.
With rising interest rates and regulatory problems, the Mexican market is a difficult place to be in for crypto assets.
Mercado Bitcoin has experienced a decline in trading volumes that is “similar” to the crypto space generally, he stated, declining to give up-to-date numbers. The firm reported a trade volume of 40 billion Brazilian reais ($7.31 million) in 2021.
Rabelo believes that the crypto winter will continue to chill investors through 2023. With a slower market and fewer funds available, Rabelo predicts that the market will slow down.
He said, “This low tide will go and we’ll experience other moments of excitement.”