Cryptocurrency trading platform Bitso has become the first crypto company to be regulated in Latin America, which has opened the door for numerous possibilities. At a time when regulators in Washington and other major countries are lashing Bitcoin and other digital tokens, the move in Mexico has come as pleasing news.
We're excited to announce that Bitso is the first regulated cryptocurrency company in LATAM. 🤩 🎉
Go to https://t.co/96wNDMBigt or update your app and open it to accept our new terms and conditions.
— Bitso (@Bitso) July 19, 2019
In its official blog, Bitso stated that the company’s trading, storing, withdrawal and deposits will be regulated by the Gibraltar Financial Services Commission’s (GFSC) Distributed Ledger Technology Regulatory Framework (DLTRF), from 1st August 2019. DLTRF was laid down to regulate crypto businesses in the region to protect consumer rights, and Bitso has become the first company to be regulated under the new framework.
The regulation of Bitso is being considered as a landmark move in Latin America, which will allow more and more companies to get regulated and avoid being banned at some point. As more and more companies get regulated, the adoption of Bitcoin and other cryptocurrencies will see a rise. For instance, one of the crisis-ridden countries in the region, Venezuela has been utilizing Bitcoin as the savior from hyper-inflation.
Also, as the American rivals like Russia plan to launch their own token for ending dependence on the USD for international trade, Latin American countries might soon follow its footsteps. However, the recent developments in the regions leading country, Brazil, have been disheartening. The newly elected President Jair Bolsonaro suspended the country’s Indigenous Cryptocurrency project, which was targeted towards including the indigenous tribes into the monetary system while maintaining their privacy and sovereignty.
Nonetheless, there have been several crypto-blockchain events held in the last few months, which has mostly been fruitful. Once big companies like Ethereum, Ripple, Binance, Coinbase, etc. get regulated, the usage of crypto for general use will grow multi-fold, as the region has enormous potential for the industry.