Mexican unicorn Bitso units out transparency roadmap amid FTX crash By Reuters

By Valentine Hilaire

MEXICO CITY (Reuters) – Mexican cryptocurrency trade unicorn Bitso laid out a transparency roadmap, as strain from customers mounted following the high-profile collapse of crypto trade FTX, a high Bitso govt instructed Reuters on Thursday.

In a spectacular crypto blowup, FTX filed for defense in the USA earlier this month after merchants pulled $6 billion from the platform in three days and rival trade Binance deserted a rescue deal.

Bitso, which operates in Mexico, Brazil, Colombia and Argentina, will publish a solvency report in lower than a month and is within the course of of choosing an exterior companion to hold out an audit, Bitso’s Chief Regulatory Officer Felipe Vallejo instructed Reuters.

Bitso just lately joined a gaggle of worldwide companies within the crypto sector, that are working to create an easy-to-understand report so customers can determine for themselves if companies have funds to again their transactions.

“The proofs of funds revealed by some firms are inadequate since they solely present property and don’t mirror how a lot crypto or cash it owes its customers,” he mentioned.

FTX’s crash has created a way of urgency to manage crypto, the chair of world securities watchdog IOSCO Jean-Paul Servais mentioned in an interview revealed Thursday.

Regulators throughout the area are stepping up efforts. Brazilian lawmakers are rushing up crypto regulation, and in the USA, Congress is anticipated to make progress subsequent 12 months on regulating its sprawling crypto sector.

In Argentina there are additionally indicators of exercise, mentioned Vallejo, with out giving extra particulars.

“Properly-constructed regulation may even be a bonus as it’ll take away dangerous actors from the ecosystem,” he added.

Whereas Bitso’s development may endure within the near-term because it implements the brand new transparency strategies, Vallejo mentioned non-crypto companies, comparable to remittances to Mexico, may assist offset the blow.