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Mexican Bitcoin Exchange Bitso Raises $250 Million, Takes The Lead In Crypto In Latin America

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  • Bitso is popular for Crypto remittances services in the U.S.
  • WhatsApp, Telegram, Facebook Messenger are some of the channels from where people purchase and sell cryptocurrency in Latin America.

Bitso has raised $250 million as part of series C investment in Latin America. The Mexico-based cryptocurrency platform has more than 95% market share.

Bitso, one of the largest cryptocurrency platforms from Latin America, has raised $250million as part of series C investment. Hedge Fund firm Coatue and investment firm Tiger Global have valued the company at $2.2billion. 

Other investors are Paradigm, BOND, Valor Capital Group, QED, Pantera Capital and Kaszek. 

Bitso had raised $62 million in series B investment in 2020. The local residents will use this investment for cryptocurrency. The company is also expanding its horizon through this investment. Daniel Vogel, CEO, and Co-founder of Bitso said that the company is making all the efforts to help the region’s people and really benefit from accessing these global financial services.

Bitso was formed in 2014 in Mexico. The company has multiple cryptocurrency products and services for more than 2 million customers from Mexico, Argentina, and Brazil. With the help of the Bitso app, users can buy, sell, send and receive bitcoin and eight other cryptocurrencies. There are two other platforms that the company offers. Are Bitso-Alpha is a professional trading platform, and Bitso Business, a suite of cross-border products for local enterprises.

Bitso has more than 95% market share in Mexico and 60% share in Argentina. In 2021, Bitso was chosen to test the government’s pilot project on crypto. Bitso was among the nine chosen companies that the government picked up. The company is ready to bring crypto derivatives trading platforms and interest-bearing crypto accounts.

Bitso is popular for Crypto remittances services in the U.S. These services are given in partnership with Ripple based in San Francisco. In 2020 Bitso raised $1.2billion in remittances. The money raised was nearly 3% of the yearly remittances volume between Mexico and the U.S.

Regional trends

In Latin America, crypto is used for speculation, trading, and capital mobilization, driven by remittance needs.

Even though steep exchange rates and the constant devaluation of fiat or local currencies favor crypto adoption, there is still difficult for new users to make its mark. Samuel Gomez Milano, Executive Director and Co-founder of CoinGroup, believes that nobody regulates crypto and blockchain-related financial services in the region.

Mexico was the first country to start with the Fintech law in March 2018. But the legislation is skeptical about crypto. They provide only a clear framework for banks and fintech’s use of virtual assets.

The economy of the country is primarily dependent on cash, which is a disadvantage for cryptocurrency usage. 90% of all transactions are done in cash. People interested in crypto use third-party services like people who have wallets; they are being asked to invest in cryptocurrency by the enthusiasts.

WhatsApp, Telegram, Facebook Messenger are some of the channels from where people purchase and sell cryptocurrency in Latin America. Instead of dealing with it by themselves, they prefer to find an expert despite the presence of platforms like LocalBitcoins, Buda, and Panda.

It is no doubt that there is a risk of using these apps, but it is being used by the people as many still do not understand crypto fully. Irrespective of the problems, remittances help in increasing the use of crypto. Mexico raised $4billion in remittances in 2020 March. It was 35% up from the previous year.

Western Union Bank sends remittances with an average fee of 10.9% per transaction. Eloisa Cadenas, CEO, CryptoFintech, and Professor at Mexican Stock Exchange, informed that Bitso made more ad stages of using crypto for remittances in Mexico. This growth has proved that It is helping recipients.

Hence, there are still many who have to adopt the crypto way. Last year only 5 to 9% of crypto activities per month were recorded from the region. On the other hand, it feels that the remittances market will increase shortly.

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