Mercadolibre, one of Latin America’s largest e-merchants, has partnered with credit giant Mastercard to use its technology to secure the company’s cryptocurrency ecosystem. Thanks to this partnership, Mercadolibre will be able to use Mastercard’s Ciphertrace technology, to enable the company to improve the control and security of cryptographic transactions in its commercial ecosystem.
Mercadolibre to strengthen crypto-vigilance
Mercadolibre, one of Latam’s leading online retailers, has partnered with Mastercard, the credit technology company, to improve its due diligence when assessing risk in its cryptocurrency trading platform. The company, which introduced cryptocurrency trading through its own payment system, Mercado Pago, will use Mastercard technology to track transactions on its trading services to prevent money laundering and other crimes .
Mastercard’s technology, resulting from the acquisition of Ciphertrace, a blockchain audit company, will allow Mercadolibre to monitor, identify and assess risks while helping the merchant comply with their regulatory obligations, according to a PR statement issued by the company.
On the importance of this partnership for the improvement of their products, Paula Arregui, Senior Vice President and COO of Mercado Pago, said:
In line with our goal of democratizing business and financial services, we want to remove more barriers and provide a simple and secure experience with crypto assets. Our alliance with Mastercard improves financial education, user experience and transparency in the industry.
Brazil Compliance and Cryptography Laws
Brazil is one of the hottest cryptocurrency markets in Latin America, with adoption levels reaching high numbers, according to reports from Mastercard Brazil. Compliance and due diligence are becoming increasingly important in Latam environments and in the country, where the government is focused on passing a cryptocurrency bill later this year.
On the issue of compliance, Ajay Bhalla, President of Cyber and Intelligence at Mastercard, said:
The potential of cryptocurrencies to change our daily experiences is enormous, but every interaction and experience must be protected.
Mercadolibre has been investing in crypto since January, with the company announcing strategic investments in Paxos, a tokenization company, and Mercado Bitcoin, a Latam-based cryptocurrency exchange, in January. Additionally, the company purchased $7.8 million worth of bitcoins last April for its treasury.
What do you think of the latest partnership between Mercadolibre and Mastercard? Tell us in the comments section below.
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