Coinbase Reportedly Close to Acquiring Bitcoin Exchange Mercado, While Binance Prepares Rio Expansion
It is possible that Coinbase and Binance may compete in Brazil with their respective growth ambitions.
Coinbase is apparently pursuing a massive M&A transaction to acquire one of the largest crypto exchange platforms in Latin America, while Binance has indicated it would launch its own Brazilian operations.
According to a tweet from Estado’s Broadcast service, Coinbase is “expected to announce the acquisition of 2TM,” the operator of Mercado Bitcoin, “before the end of April,” and the two parties are “prepared to close a transaction.”
The media site also said that Coinbase had attempted to establish an agreement with another large local cryptocurrency exchange, the Mexican platform Bitso, but had been unsuccessful.
No proof was provided to support the accusations, and according to various media publications, Coinbase has yet to comment on the concerns. Cryptonews.com has also reached out to Coinbase for comment.
Mercado Bitcoin is now collaborating with the Brazilian Central Bank on the latter’s digital currency ambitions, and just recently, in an interview with the same media site, discussed its aspirations to grow internationally after an investment from SoftBank. Among the other investors in the platform is the e-commerce giant Mercado Libre, which purchased shares in 2TM in January of this year.
Binance has followed through on its acquisition of Brazilian securities firm Sim;paul Investimentos earlier this month. Sim;paul Investimentos works under the supervision of the Central Bank and the Securities and Exchange Commission. Binance has now announced that it would “establish an office” in Rio de Janeiro.
Last week, Rio’s crypto-enthusiastic mayor Eduardo da Costa Paes revealed intentions to enable municipal citizens to pay local taxes in cryptocurrency.
Changpeng “CZ” Zhao, the founder and CEO of Binance, announced in a Twitter post that Paes had “done his part” in a “handshake agreement” by assuring that Rio citizens could use “crypto for tax payments,” and that Binance was now “working on” its end of the arrangement – building a Brazilian office in the city.