This collaboration aims to provide comprehensive protection against potential threats such as hacking or lost access, ensuring the safety of customers’ funds. Coincover’s solution will integrate with Bitso’s existing multi-party computation (MPC) infrastructure, offering a non-custodial disaster recovery option. This integration will allow Bitso to recover lost access quickly in cases of operational or technological failures.
To further enhance security, Bitso will expand its integration with Coincover’s Risk Engine. This tool monitors outgoing transactions in real time, identifying and mitigating potential security risks. According to the official press release, this additional layer of protection complements Bitso’s existing fraud prevention measures and represents an upgrade over many current market solutions.
The partnership comes in the context of heightened security concerns in the cryptocurrency industry. The company press release reveals that, in the second quarter of 2024, crypto-related losses reached USD 572 million, a significant increase from USD 220 million in the same period the previous year. Notably, 70% of these losses were linked to hacks targeting centralized exchanges. With over half of Latin American investors taking a long-term approach to cryptocurrency, viewing it as a savings tool rather than a trading asset, exchanges in the region are under pressure to address these security challenges.
Officials from Bitso emphasised the importance of security in their growth strategy, stating that this partnership strengthens their commitment to providing a secure platform. They noted that the collaboration offers enhanced protection and peace of mind for Bitso’s users.
Representatives from Coincover underscored the necessity of robust blockchain protection for crypto firms, particularly in regions such as Latin America where centralised exchanges are prevalent. They also pointed out that as these exchanges grow, they increasingly become targets for cyberattacks, making comprehensive protection essential to maintaining customer trust and staying competitive.
Bitso is a financial services company in Latin America that leverages cryptocurrency to offer various products and services. The company provides a secure platform for earning returns, making international transfers, and trading over 50 cryptocurrencies.
Founded in 2018, Coincover provides blockchain protection solutions designed to address trust issues in the industry. The company’s offerings ensure that access to assets is secure and protected from theft, hacking, and human error.
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