According to the information provided by Coindesk source, it took just eight months for Bitso, the largest Mexico’s crypto exchange, to increase by 342%. This year the quantity of Bitso users has exceeded 1 mln. users. Apart from this, there exist 35 crypto brokerages which have less 400.000 trading accounts. This means, that, practically, the substantial part of booming increase of Mexican crypto market has been provided by the one largest exchange. This situation is not generally typical for cryptomarkets worldwide.
What’s the reason of such boom? Two years ago the Mexican Government commenced severe struggle against corruption, fraudster and money laundering. As per the new legislative requirements, the foreign financial institutions which held clients’ deposits in Mexico had to register as a national financial body.
Such requirement was not acceptable for many foreign companies which had been working in the field of money transfer. For example, PayPal and Western Union claimed that they cease their practice of holding such deposits in the country. In other words, people were deprived of the opportunity to transfer or receive money abroad.
Consequently, a lot of Mexican people turned to crypto market searching for fast and safe way of transferring money and for buying things online. This was the main reason for the cryptomarket to spur. Currently, fee for cryptocurrency transfer via a national exchange is about 0.1% which makes such crypto transactions more profitable in comparison with fiat money transmittance.
All and all, Mexico has a large population interested in discovering up-to-date financial tools. The current internal factors make it possible to forecast cryptomarket growth in the long run.