The third largest exchange in the world buys an Argentine firm

Despite being 57% below its peak From $68,800 last November, and far from the high of $48,000 it had in March, bitcoin at $29,000 continues to generate business. And many of them in Argentina.

The last move was made by el exchange Bitex, founded by the Argentine entrepreneur Francisco Buero and with operations in several countries in the region. The firm was acquired this Thursday by Huobi Global the third digital asset market by volume, which with the operation seeks to grow in Latin America.

Founded in 2014, Bitex tiene headquarters in Chile, Paraguay and Uruguay. Huobi Global, which did not disclose the amount of the purchase, plans to integrate the operations of the acquired company with its platform, which will allow users in Latin America to exchange all digital assets available on Huobi Global.

But despite this integration, Bitex will keep its brand and will continue to be managed independently by its current management team.

“Since Huobi Group first entered the Latin American market in 2019, we have seen a remarkable growth there and we are optimistic about our prospects for the region,” said Jeffrey Ma, global director of mergers and acquisitions at Huobi.

Latin America occupies the fifth place in the world in cryptocurrency adoption and captures between 8% and 10% of global activity.

The region saw cryptocurrency usage increase by 1,370% between 2019 and 2021, with Venezuela and Argentina occupying the seventh and tenth place, respectively, in the 2021 Global Cryptocurrency Adoption Index published by Chainalysis.

Caleb Lim, senior investment manager at Huobi Group, explained that, “Currently, only about half of the population in Latin America has bank accounts. Through this acquisition, Huobi Global hopes to satisfy this growing appetite for alternative financial services through blockchain technology.

And he explained that they intend to add more coins and work with local partners to expand their ecosystem in Latin America.

The CEO of Bitex, Francisco Buero, explained the origin of Bitex and its relationship with the economic context of Argentina and the countries of the region: the company “was founded to protect the value of our users’ moneyas a result of the main financial crises in Latin America”.

“Having grown rapidly after eight years of successful operations, we believe that our partnership with Huobi Global will not only support our expansion, but also help our clients by allowing them to access a broader range of digital assets.”

In addition, Buero highlighted the Huobi’s strong track record on security issues.

Huobi has been in the region since it launched its operation in Argentina in 2019, attracted precisely by the growing demand for cryptocurrencies in the market.

By Editor

Leave a Reply