Brazil’s largest Bitcoin exchange, Mercado Bitcoin, has announced plans to expand into Latin America.
General Manager Reinaldo Rabelo called Chile, Mexico and Argentina are among the jurisdictions in which it will expand first, comparing the “regulatory culture” in those countries with that in Brazil.
According to Handy tulipsMexico is currently the fourth largest Latin American country in terms of peer-to-peer trade volume in Bitcoin, with Chile in fifth and Argentina in seventh place.
The strong P2P trading volume suggests that there may be significant demand from local traders that is not being met by centralized platforms.
The announcement comes along with news of an investment round where Mercado Bitcoin raised nearly $ 38 million from venture capital firms including Parallax Ventures, Evora Fund and Banco Plural.
Mercado Bitcoin will use some of the funds to invest in regulated custodian Bitrust to cater to institutional investors. The exchange will also invest in the Meubank digital wallet, which will allow customers to store crypto assets, game collectibles and other digital assets.
Once the ecosystem is consolidated, Mercado Bitcoin aims to become one of the best exchanges in the world, with Rabelo stating:
“We want to develop the crypto ecosystem in Brazil and create a market that is just as developed as that of the United States. To do this, we aim to be one of the top five digital exchanges in the world. ”
“Our long-term goal is to participate in the construction of a new infrastructure for the financial market based on blockchain, smart contracts and crypto assets,” he added.
Despite being among Latin America’s top exchanges by volume – with more than $ 3.7 billion in trade since its launch in 2013 – the exchange has operated almost exclusively in Brazil. The platform’s user base has doubled from about one million to 2.2 million in the past two years.
The fair aims to exceed a user base of 3 million and expand the team from 200 to 300 by 2021.