Coinbase Acquisition of Brazilian Exchange Mercado Bitcoins ‘2TM’ Falls Apart

  • President Jair Bolsonaro is expected to sign the bill into law this year.
  • Rio de Janeiro will accept payments (BTC) for taxes on urban real estate.

Coinbase (NASDAQ:) and Mercado Bitcoin’s parent company, 2TM, have reportedly ended discussions on a possible acquisition of the company. 2TM and Coinbase, according to a Bloomberg article published Tuesday, have halted talks about the US crypto exchange buying the $2 billion Brazilian company. However, as 2TM declined to comment and a Coinbase representative stated that it was “committed to the Brazilian market”, it is not obvious why the acquisition did not go through.

Immense potential in Brazil

In July 2021, 2TM became a unicorn when a $200 million fundraising round lifted the company’s value above the $2 billion mark, cementing its place as a top brokerage firm. of cryptocurrencies in Latin America. Before Coinbase’s alleged ambitions to buy 2TM were made public in March, reports estimated the company to be worth $2.2 billion. Additionally, CriptoLoja, a Lisbon-based crypto exchange, was bought by 2TM in January.

In December 2021, a Coinbase institutional investors report on Latin America indicated the potential for growth in operations in the country’s capital city, Rio de Janeiro. President Jair Bolsonaro is expected to sign the bill into law this year after the Brazilian Senate approved it in April. In March, Rio de Janeiro will accept Bitcoin (BTC) payments for taxes on urban real estate within municipal limits starting in 2023. Additionally, Rio is the second largest city in Brazil.

US-based crypto exchange Coinbase has allegedly made takeover offers to other blockchain and crypto firms around the world. For example, Coinbase acquired Bison Trails (a blockchain infrastructure platform) and Routefire (an enhanced trading platform) in January 2021.

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