Binance, the world’s largest cryptocurrency exchange, will invest US $53 million over four years in Mexico to launch a new fintech entity, Medá.
The goal is to expand digital financial access for Mexico’s population of over 125 million, while enhancing financial inclusion and affordability. At the same time, Binance aims to expand access to innovative and user-friendly digital services through Medá.
“The move highlights Mexico’s role as a strategic fintech hub in Latin America and signals Binance’s commitment to expanding fiat-to-crypto access in the region,” the company said on its content-sharing platform.
Binance — founded in China but currently with no official company headquarters — caters to more than 270 million registered users in over 180 countries, but it is not without controversy.
In June 2021, the UK’s Financial Conduct Authority ordered Binance to stop all regulated activity in the United Kingdom. In November 2023, the company pleaded guilty to U.S. money laundering charges, among other violations, and agreed to pay US $4 billion in fines.
In May, the U.S. voluntarily dismissed its civil lawsuit against Binance, in a move The Guardian attributed to the new, more friendly approach to cryptocurrencies since Donald Trump returned to the White House.
Just five weeks ago, Mexico’s National Banking and Securities Commission (CNBV) authorized an investigation into what it termed “irregular fundraising” by Binance.
That’s where Medá comes in.
Medá will operate independently under Mexican finance regulations as an Electronic Payment Funds Institution (IFPE) “in accord with the country’s evolving crypto regulations,” Binance announced. It will serve as “a regional cryptocurrency hub and regulated fintech company dedicated to driving fintech innovation across Latin America.”
Medá’s registration as an IFPE is expected to facilitate deposits and withdrawals in Mexican pesos, with the goal of improving financial inclusion by better catering to local financial needs.
According to brokerage firm AInvest, Medá is viewed as a strategic shift for Binance, “as the company moves beyond its traditional cryptocurrency trading model to offer broader financial services.”
“We are experiencing significant momentum in the cryptocurrency industry,” Frida Vargas, general manager of Binance in Mexico, said earlier this year. “Digital assets have reached audiences beyond early adopters and technology enthusiasts, with more and more investors entering the world of cryptocurrencies.”
By the end of 2024, Mexico had climbed from 16th to 14th in the Chainalysis global cryptocurrency adoption index.
The newspaper El Economista reported in February that Mexican investors’ interest in cryptocurrencies was on the rise, noting that Binance had become the most downloaded cryptocurrency app in Mexico on the Apple Store.
With reports from El Economista, AInvest and Cointelegraph
