Mexican bitcoin exchange Bitso SAPI de CV (Bitso) has raised $2.5 million Series A in a round led by Monex Group that included Variv Capital, Xochi Ventures, Digital Currency Group, FundersClub, Bitcoin Capital and Blockchain Tech Limited.

Founded in 2014, Bitso is Mexico’s First Bitcoin Exchange and offers a platform for trading bitcoin for Mexican Pesos, along with a traditional currency exchange with a central limit order book that utilizes the Ripple network to make transfers.

The company says it prioritizes security, transparency and best practice operations while breaking new ground with innovative product development.

According to Coindesk, Bitso currently has 20,000 customers and processes on average around $2.5m worth of transactions a week, charging a percentage fee based on monthly volume between 0.1 percent for 320+ bitcoin a month, to 1 percent to transactions involving amounts less that 1 bitcoin.

Involvement in the round by Monex Group Inc. is due to plans by Bitso to expand its services into other parts of Latin America, with Monex being a large Mexican firm that specializes in international transactions and payment services for commercial clients, making them an ideal partner in Bitso’s expansion plans.

Unbanked

Like many developing countries in the world, many citizens of Mexico are said to not have bank accounts, meaning an exchange service like Bitso can play an import role in providing remittance and transfer services to those who otherwise do not have access to the traditional banking sector.

There are some regulatory hurdles in the country in regards to bitcoin use.

In 2014, Mexico’s National Commission for the Protection and Defense of Users of Financial Services warned consumers in the country not to use bitcoin, saying that “bitcoin is not a legal currency; therefore, institutions regulated by the Mexican financial system are not authorized to use this virtual asset or to perform transactions with it,” before adding that “In other countries, Bitcoin is believed to have been used in illicit transactions, such as money laundering and fraud.”

That decree, while banning financial institutions from using bitcoin, was not an all out ban, however, use of bitcoin was then subsequently regulated under laws prohibiting large cash transactions, meaning that large bitcoin transactions could also be theoretically limited.

Bitso is said to have met with Mexico’s central bank, Banxico, the Banking and Securities Commission (CNBV) and the Ministry of Finance (SHCP) to provide legal clarity around its service.

Including the new round, Bitso has raised at least $4.35 million to date, with the amount of its initial seed round being undisclosed.

Image credit: Bitso.