Based on the deal, Huobi Global will integrate the exchange operations of Bitex.
In an attempt to stretch its presence into Latin America, Chinese crypto exchange Huobi Global purchased Bitex. Bitex has more than 200,000 open accounts serving individuals, corporate users, and wealthy clients. Since its inception in 2014, the Latin American crypto exchange has grown to operate in Paraguay, Uruguay, Chile, and Argentina. According to Bitex CEO Francisco Buero, the company will continue to operate under its current name and management team.
Huobi Global Purchases Bitex
Based on the deal, Huobi Global will integrate the exchange operations of Bitex. The union will allow Latin American users to trade all available digital assets on Huobi Global. Huobi Global acquiring Bitex will be of advantage to the company due to the level of crypto adoption in the region. Crypto use in the area increased by 1,370% from 2019 to 2021. Now, Latin America is ranked fifth globally for crypto adoption. Also, about 8% to 10% of global crypto activity occurs within the jurisdiction.
A Senior Investment Manager at Huobi Group, Caleb Lim, noted that just half of Latin America’s population of nearly 665 million owns bank accounts. According to Lim, Huobi will utilize its Bitex acquisition to quench the populace’s thirst for alternative financial services. Moving forward, Huobi is looking to partner with more local entities in expanding its reach in Latin America.
Global Head of M&A at Huobi Group Jeffrey Ma said:
“Since Huobi Group first entered the Latin America market, we have seen remarkable growth there and are bullish on our prospects for the region. We are pleased to partner with an established player like Bitex, as we look to grow our footprint in Latin America. Our partnership will enable more users to trade with Huobi’s proven security, liquidity, and stability.”
Speaking further, he continued into the reason behind the birth of Bitex, which was to protect the value of users’ money. In addition to expanding its presence in Latin America, the Huobi Global CEO said acquiring Bitex will enable it to serve its consumers better. Ma noted:
“Additionally, Huobi Global’s strong track record in security will help safeguard our important mission as we continue to operate as a borderless exchange.”
Huobi’s Debut in Latin America
Huobi’s initial step into the Latin American market was in 2019 when it launched Huobi Argentina. The Chinese exchange made its debut in the region amid the high demand for crypto-related products and services. About a year after the launch, Huobi Argentina rolled out fiat-to-crypto pairing involving the Argentine Peso, BTC, and USDT.
Huobi Capital shut down its business in China in compliance with the regulatory crackdown. Shortly after the exit, the company revealed plans to re-enter the US market.
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