Coinbase and Brazilian company 2TM, the parent company of Mercado Bitcoin, have reportedly scrapped talks around the crypto exchange purchasing the firm.
According to a Tuesday Bloomberg report, 2TM and Coinbase have ended discussions around the United States-based crypto exchange buying the Brazilian company, which was valued at more than $2 billion. It’s unclear what led to the purchase not going through, as 2TM reportedly declined to comment and a Coinbase spokesperson said it was simply “committed to the Brazilian market.”
As the parent company of Mercado Bitcoin — one of the largest crypto brokerage firms in Latin America — 2TM cemented its unicorn status in July 2021 following a $200 million funding round, pushing the company ahead of a $2 billion valuation. Cointelegraph reported in March that 2TM was valued at $2.2 billion ahead of Coinbase’s reported plans to purchase the firm. In addition, 2TM acquired a controlling stake in Lisbon-based crypto exchange CriptoLoja in January.
A Coinbase institutional investor report on Latin America from December 2021 suggested interest in expanding operations in Brazil. In April, Brazil’s Senate approved a law to regulate cryptocurrencies in the country, expected to be signed into law by President Jair Bolsonaro by the end of 2022. Rio de Janeiro, the second-most populous city in Brazil, also announced in March it will accept Bitcoin (BTC) payments for taxes related to urban real estate within city limits starting in 2023.
One of the largest crypto exchanges in the United States, Coinbase has reportedly been making offers to purchase other crypto and blockchain firms across the globe. In January 2021, Coinbase announced the acquisition of blockchain infrastructure platform Bison Trails as well as the Routefire platform for enhanced trade execution. In April, Cointelegraph reported the exchange was planning to buy major Turkey-based crypto firm BtcTurk for $3.2 billion.
Cointelegraph reached out to 2TM, but did not receive a response at the time of publication.