The world's third-largest cryptocurrency exchange by trading volume, Huobi, announced on Thursday that it had purchased Latin American crypto exchange Bitex in order to extend its presence in the area.
Huobi wants to combine Bitex's operations with its platform, however the Latin American crypto exchange will retain its branding and continue to operate independently, according to the details of the acquisition, which were not published.
According to a press statement, the integration would give Latin Americans access to a vast selection of digital assets available on Huobi.
With the introduction of Huobi Argentina in 2019, the Huobi Group expanded into Latin America. In 2020, it began trading the Argentine Peso against Bitcoin (BTC) and Tether (USDT) as a fiat-to-crypto exchange.
Bitex is a cryptocurrency exchange that operates in Argentina, Chile, Paraguay, and Uruguay.
According to Chainalysis, Latin America contributes for 8% to 10% of worldwide bitcoin activity, with a population of roughly 665 million people.
Huobi Global wants to address a rising need for alternative financial services using blockchain technology through this acquisition, given only around half of Latin America's population has bank accounts, according to Caleb Lim, senior investment manager at Huobi Group.