Bitso, a cryptocurrency exchange in Latin America, has joined forces with blockchain protection company Coincover, to provide comprehensive security for digital assets.
By strategically partnering with Coincover, Bitso will benefit from complete protection against disaster situations, such as hacking or lost access, enabling it to better protect its customers’ funds.
By integrating with Bitso’s multi-party computation (MPC) infrastructure, Coincover delivers a non-custodial disaster recovery solution, enabling Bitso to swiftly recover lost access in the event of an operational or technological failure.
Nano Rodriguez, head of strategic alliances at Bitso, said: “As we continue to grow and expand our services, ensuring the safety and security of our customers’ digital assets remains our top priority. By partnering with Coincover, we are reinforcing our commitment to providing a secure and trusted platform for our users. This collaboration allows us to offer unparalleled protection and peace of mind, making Bitso the most reliable cryptocurrency exchange in Latin America.”
To extend its risk mitigation capabilities, Bitso also plans to deepen its integration with Coincover’s Risk Engine to benefit from complete protection. This monitors outgoing transactions in real-time to actively identify and mitigate security risks, complementing Bitso’s existing fraud prevention measures. Coincover’s risk solution adds an extra layer of protection compared to existing solutions on the market.
Protection against growing crypto losses
In Q2 of 2024, crypto losses reached $572million, more than double the $220million from the same quarter last year. Seventy per cent of these losses were due to hacks on centralised exchanges. With half (50.3 per cent) of LatAm investors taking a more long-term approach with cryptocurrencies – preferring to use them as a savings tool rather than a daily trading asset – LatAm exchanges must master these challenges and opportunities.
“Blockchain protection is an absolute necessity for crypto firms, rather than merely a ‘nice-to-have’. Latin America has the highest preference for centralised exchanges amongst crypto users in the world,” explained Digby Try, senior vice president at Coincover. “While this is a sign of the industry’s growth in the region, it means these exchanges are increasingly becoming the targets for hacks and scams.
“It is essential that crypto exchanges can give their customers complete reassurance that their funds are safe from these threats, or they risk giving competitors an edge. Our partnership will give Bitso’s customers the gold standard for asset protection and represents another major milestone in our mission of building greater trust, confidence, and safety in crypto.”
Coincover and Bitso explained that the partnership underlines Bitso’s credibility as a safety-conscious exchange that goes above and beyond minimum regulatory requirements to guarantee the safety of customers’ assets, at a time when security is the top priority for customers. This milestone also accelerates Coincover’s expansion into Latin America.