Mexico’s first Bitcoin exchange, Bitso, announced that it has raised $2.5 million in venture capital. The company, founded in 2014, has now raised a total of $4.35 million, becoming the dominant cryptocurrency provider in the Latin American region.
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Mexico’s First Bitcoin Exchange Bitso Raises $2.5M in Series A Funding
Bitso was the first exchange that enabled bitcoin for pesos trading within Mexican borders. Founded by Ben Peters, Daniel Vogel, and Pablo Gonzalez, the company offers a traditional type of currency exchange with a limited order book. The central limit order book uses the Ripple network to validate transactions.
The latest Series A funding round of $2.5 million came from groups such as Variv Capital, the Monex Group, FundersClub, and Digital Currency Group. Bitso plans to use the capital injection to expand its resources to other countries in Latin America. The Monex Group led the round due to its involvement with international transfers.
Increased Volumes and Competitor Acquisition
Bitso’s trading volume is smaller in comparison to U.S. exchanges, such as Coinbase’s GDAX. The American exchange trades roughly 5,500 BTC a day. However, Bitso’s volume has increased over the years, and the business is growing. Last summer, Bitso acquired Mexican competitor Unisend. In 2015, the exchange traded roughly 34 BTC daily. Currently, in 2016, the company has volumes reaching 153 BTC per day.
When Bitso began in 2014, the exchange became popular before it launched, accruing 1,000 pre-registered users. Following the launch, Bitso offered 0 percent commission on trades to get the ball rolling. The company offered a few options for people to fund their accounts with Mexican pesos. Bitso provided a Mexican SPEI transfers, bank wires, and users could fund their accounts at local stores like 7/11, and Walmart.
Bitso’s E-commerce Platform and its Mission to Be Mexico’s Top Bitcoin Exchange
Bitso also offers a merchant e-commerce platform that enables commission-free bitcoin acceptance and a point-of-sale application. Merchants can visit the BitsoPay setup and add the payment processing feature. The BitsoPay system allows for instant payments, callbacks and communications with a standard SCI platform.
The venture capital investment in Bitso will give the company more wingspan to expand services, they told press. Mexican authorities, such as the region’s central bank, have warned about Bitcoin use in the past. According to sources, the company has been in contact with the bank and Mexican finance officials. The exchange aims to stay a top contender within Mexico’s borders while expanding in other Latin American countries.
What do you think about Bitso’s recent funding round of $2.5 million? Let us know in the comments below.
Source: Silicon Angle
Images via Shutterstock and Bitso’s website.
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