Brazil-based crypto exchange Mercado Bitcoin is reportedly looking to initiate its Mexico operation this year, awaiting regulatory greenlight.

Specifically, the current Head of Mercado Bitcoin, Reinaldo Rabelo, reportedly revealed that the firm was waiting for regulatory greenlight to begin rolling out services in Mexico. 

Particular information related to the expansion is yet to be revealed, but Rabelo disclosed via an April interview that the acquisition of a crypto exchange was viewed as a more simplified approach for its plan to function in a new market, to avoid starting from ground zero.

In January, Mercado Bitcoin’s operator 2TM Group reportedly completed the purchase of a controlling stake in Lisbon-headquartered crypto exchange CriptoLoja, as included in the scope of the firm’s plan for widening its reach into Portugal. 

Coinbase reportedly also held discussions to buy 2TM – with a valuation of over $2 billion at the time – but ceased all talks in May.

Rabelo additionally claimed that 2TM was “looking at the Latin American market a bit more cautiously due to the macroeconomic scenario,” but did not suggest where or if the firm might expand next. At the time of publication, 2TM functions in Brazil and Portugal via firms including Mercado Bitcoin, Blockchain Academy, Bitrust, CriptoLoja and Portal do Bitcoin.

If Mercado Bitcoin goes through with the plan to set up shop in Mexico, it would likely see crypto exchange Bitso as a prominent rival, which currently provides services to the nation along with Argentina, Brazil, El Salvador and Colombia. 

Many regulators in Mexico have put up a proposal for adopting Bitcoin (BTC) as legal tender locally, like its neighbor El Salvador did in September last year, but plans to roll out a central bank digital currency (CBDC) in 2024 are also in the pipeline.