Chinese cryptocurrency exchange Huobi has announced that it has bought a Latin American cryptocurrency exchange, Bitex.
The exchange has done this to reach Latin American countries like Chile, Argentina, Uruguay, and Paraguay. Huobi explains that the company is expanding its influence in Latin America as it sees the region as one of the most proactive cryptocurrency acceptance regions in the world.
Huobi Global to Acquire Crypto Exchange Bitex
On Thursday, global crypto exchange leader Huobi Global explained that the company would expand into the Latin American market and, in doing so, bought Bitex. However, the announcement has yet to reveal the terms of the contract between Huobi exchanges and Bitex.
The Bitex exchange is a cryptocurrency exchange established in 2014 that provides a considerable market for cryptocurrencies and stablecoins.
Its services cover all of Latin America; Argentina, Chile, Uruguay and Paraguay. Although Huobi will become the parent company, the announcement shows that Bitex will retain its current brand, management team and operation.
Huobi Global Exchange and Latin American Market
At the Chinese stock exchange, Jeffrey Ma, head of global mergers and acquisitions, commented on Huobi’s venture into Latin America.
He explained that since Huobi Global first set foot in the Latin American market, the company has seen massive growth and acceptance. Thus, the region is one of the busiest and most interesting markets in the world.
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He also explained that the Chinese stock exchange is more than happy to partner with the Latin American stock exchange in this endeavor. Both companies are tag-tea to expand their influence in Latin America.
Furthermore, he pointed out that this collaboration will provide merchants and users with a tremendous opportunity to access Huobi’s liquidity, security and stability as it is a larger exchange.
Bitex branding and management
As previously reported, Huobi will integrate its platform into the Bitex ecosystem, while the Latin American company will retain its team, operation and branding. Therefore, this collaboration will allow Bitex customers to access more cryptocurrencies provided in Huobi’s global crypto trading engine.
This is not the first time that Huobi Global has entered the Latin American market. He had tried once in 2019 when he entered the region when Huobi Argentina exited. Since its rollout in the Argentinian market, Huobi Argentina has seen massive growth of 1,370%.
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It should be noted that overall Huobi is the 4e largest cryptocurrency exchange by trading volume. When it comes to digital asset holdings, Huobi ranks third, with around $11.7 billion in AUM (assets under management).
Francisco Buero is confident that Huobi Global will help expand Bitex’s reach. He said that Bitex was created to provide value for money protection for customers.
Featured image from Pexels, chart from TradingView.com