The cryptocurrency exchange platform (exchange), Bitso sees a favorable environment in the midst of the conflictive environment that the digital asset sector has been going through since the fall of FTX, the insolvency of the main banks that supported the ecosystem and the lawsuit filed on Monday by US regulators against Binance.
Within the framework of its ninth anniversary, the general director of the firm in Mexico, Bárbara González, explained that there are complexities that arise in the financial sector; however, the opportunities for the platform she leads are vast.
“What happened in the last two weeks has fed and strengthened the rhetoric of why we exist. If the funds are not safe in US banks with all the supervision of the regulators, maybe we need a structure where there are no people interceding in our financial system”, González commented.
The platform indicated that during 2022 around 3.3 billion dollars in international transfers were transacted, which represented an increase of three times what was processed in 2021 and a growth of 32% in volumes transacted during the second half of last year. .
Currently the exchange It has a volume of daily transactions amounting to 40 million dollars, in terms of its global position it ranks 53rd in the world ranking of platforms by number of operations, according to data from the analysis firm CoinMarketCap.
Although expectations are positive, González pointed out that given the problems that exchanges have presented in the United States, Bitso has operated with caution and does not offer services to US citizens until it has the corresponding licenses to operate in the neighboring country.
“Normally we see the US regulator setting an example for other regulators, we’re making sure we continue to work very closely with our local regulators to get everything right. We want users to operate on platforms where they have control of their processes, we don’t want them to be forced to operate on platforms without supervision,” González explained.
Trust in solvency mechanisms
Given the recent scandals surrounding the crypto world, in terms of regulatory compliance and the fall of the platform FTXDue to the lack of solvency, González highlighted the importance of having sufficient mechanisms to provide confidence to users and indicated that during the crisis caused by the collapse of the exchange, more than 95% of Bitso’s clients maintained their funds and their average balance. in the last six months.
“The fall of FTX is not a reflection of the industry, it is a reflection of the lack of governance, compliance, auditors, board of directors. The absence of controls and processes cause a business to be affected,” said González.
The executives highlighted the importance of having transparent mechanisms that provide the certainty of solvency in an exchange, since they have the obligation to have the total funds of the users and should not lend them without their consent.
“Before, a bank run took days or weeks, now it happens in hours, since banks have this liquidity problem, they are exposed and that is where the value of blockchain and bitcoin begins to manifest itself, specifically as a store of value,” explained Santiago Alvarado. , vice president of product at Bitso.
Alliances
In the efforts of the platform to comply with a self-regulation, Bitso announced an alliance with Proven, a financial audit firm specializing in crypto companies. Through the union, the objective is to show the assets and liabilities without the need to publicly disclose the balance sheets of their clients or any other confidential information to the public.
In relation to the international volume transacted, they highlighted their alliance with Ripple, a blockchain and cryptocurrency business solutions firm.
“We are delighted to see the significant growth of Bitso’s operations and look forward to continuing our alliance to bring cryptocurrency-powered cross-border payments to more businesses across Latin America,” Aaron Sears, Ripple’s managing director of the Americas, said in a statement.
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