Mercadolibre, one of the biggest “e-tailers” in Latam, has partnered with credit giant Mastercard to make use of its tech to secure the cryptocurrency ecosystem of the company. Through this partnership, Mercadolibre will be able to use Mastercard’s Ciphertrace technology, to allow the company to enhance the control and security of the crypto transactions in its trading ecosystem.
Increase Crypto Vigilance with Mercadolibre
Mercadolibre is a major e-tailer in Latam and has partnered up with Mastercard to increase its diligence in assessing the risks associated with its cryptocurrency trading platform. The company, which introduced cryptocurrency trading through its own payment system, Mercado Pago, will use Mastercard’s technology to keep track of transactions on its trading services to prevent money laundering and other crimes from happening.
Mastercard’s technology, which comes from the acquisition of Ciphertrace, a blockchain auditing company, will allow Mercadolibre to monitor, identify, and assess risks while helping the retailer to comply with its 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, Mercado Pago’s senior vice president and COO, stated:
We want to remove all barriers that prevent people from using crypto assets. This is in line with our goal of decentralizing financial services and trading. Mastercard and our alliance enhance financial education, transparency, and the user experience in this industry.
Compliance and Crypto Laws for Brazil
Mastercard Brazil reported that Brazil is the most popular cryptocurrency market in Latin America. There are high adoption rates. Due diligence and compliance are increasingly important in Latam and the country where the government is trying to get a bill on cryptocurrency later in the year.
Ajay Bhalla, the president of Cyber and Intelligence for Mastercard spoke out on compliance.
It is possible for cryptocurrency to have a profound impact on our lives, however every interaction and experience needs to be kept safe.
Mercadolibre started investing in crypto in January. In January the company made strategic investments in Paxos to tokenize its assets and in Mercado Bitcoin which is a Latam-based cryptocurrency trading platform. The company also purchased bitcoin worth $7.8million last April to fund its Treasury.
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