Cryptocurrency lending and exchange platform Nexo has announced the acquisition of Argentina-based digital asset trading platform Buenbit. The move is a cornerstone of Nexo's strategic plan to expand its geographical footprint across Latin America, a region experiencing significant growth in digital asset adoption.
Financial terms of the deal were not disclosed. The acquisition provides Nexo with immediate operational access to Buenbit's established business in Argentina and Peru. Buenbit is registered with Argentina's securities regulator and boasts over a million subscribers, offering Nexo a "plug-and-play" entry into these markets. Nexo intends to establish Buenos Aires as a regional hub to coordinate future collaborations and investments in Argentina, Peru, and Mexico.
This expansion comes as Nexo seeks to reposition itself globally following its earlier exit from the United States market due to $45 million in regulatory fines. The company has announced its intent to re-enter the U.S. and has recently engaged in meetings with political figures, including former President Donald Trump and Donald Trump Jr., highlighting its efforts to navigate complex regulatory landscapes.
The strategic push into Latin America capitalizes on regional economic conditions. In Argentina, high inflation has driven increased public interest in cryptocurrencies as an alternative store of value. Furthermore, Argentina's regulatory environment is evolving, with reports suggesting the central bank is considering allowing traditional banks to trade crypto. Nexo's acquisition of a locally licensed platform like Buenbit is seen as a move to adeptly navigate current and future regulatory frameworks.
Nexo plans to deploy its full suite of financial services in the region, including crypto-backed loans, high-yield earn products, and advanced trading tools, aiming to become a comprehensive financial hub for South American users.
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