Bitso, the Mexican cryptocurrency trading platform, is set to become the first Latin American crypto company to be regulated as from 1st August 2019. The company has just been awarded a DLT provider licence by the Gibraltar Financial Services Commission, a positive move in the face of world-wide regulator nervousness towards Facebook’s Libra project. The license gives Bitso a leading position as one of the most innovative financial services providers in LatAm and the world, making it the first exchange platform in LatAm, licensed and regulated by the GFSC.
According to Bitso’s website blog, its cryptocurrency services will “now be regulated by robust European standards applicable for the industry. In other words, the granting of the GFSC license means that the Gibraltar financial authority validated the quality of our services from all aspects including, for example: the level of protection we offer from a custody and security perspective, our high quality customer support, our constant efforts to mitigate the particular risks associated with the use of Blockchain technology in the financial sector, and our capital requirements to ensure that Bitso remains adequately capitalized as a secure regulated business.”
Bitso goes on to say: “The approval and regulation of Bitso by the GFSC represents a key step on our way to providing a platform that connects traditional and digital economies, not only in Mexico but in Latin America and Europe, and we are thrilled to share this with you. We would also like to thank the Government of Gibraltar for their continued support, and our team in Mexico and Gibraltar who have assisted Bitso with the licensing application process.”
The regulation of Bitso in Gibraltar has been hailed as a landmark for the crypto industry in Latin America. It is seen as a move which will allow an increasing number of companies to become regulated. This is likely to lead to a more widespread adoption of Bitcoin and other cryptocurrencies, a feature that some advocates believe could have enormous beneficial effects for some of the countries in the region, allowing for greater control over national economies, and opening up opportunities for huge numbers of unbanked people, including indigenous tribes, to enter the monetary system.
Bitso will continue to work with the Mexican authorities to promote the enactment of appropriate regulations in the country. With a growing number of crypto events and conferences taking place in Latin America, interest is very much on the rise and the region is seen as having enormous potential for the industry. Delighted with the grant of the Gibraltar DLT License, the company told its service users: “We support financial innovation and everybody’s right to access new and beneficial technologies. Be sure we will continue to do so.”