Bitso Partners with Coincover for Enhanced Security of Digital Assets
Bitso, a leading cryptocurrency exchange in Latin America, has announced a strategic partnership with Coincover, a prominent blockchain protection company, to bolster the security of its digital assets. This collaboration is particularly significant in light of the increasing threats posed by cybercriminals in the cryptocurrency space. As part of this integration, Coincover will enhance Bitso’s existing multiparty computation (MPC) infrastructure, which will allow the exchange to provide non-custodial disaster recovery solutions. This means that Bitso can protect its users’ assets from various risks, including hacking incidents and accidental loss of access to accounts.
The integration of Coincover’s technology will not only secure the assets but also enable Bitso to monitor outgoing transactions in real-time. This proactive approach is crucial in an environment where the speed and volume of transactions can make it challenging to detect fraudulent activities swiftly. By implementing Coincover’s solutions, Bitso aims to provide its customers with peace of mind, knowing their investments are safeguarded against potential threats.
According to data from Immunefi, the cryptocurrency sector has suffered staggering losses this year, with more than $900 million lost to hacks and fraudulent activities. A substantial portion of this loss, approximately $572 million, occurred in the second quarter alone, which is more than double the losses experienced in the same period the previous year. This alarming trend underscores the urgent need for enhanced security measures within the industry, especially for centralized exchanges that are more vulnerable to attacks.
Digby Try, the senior vice president at Coincover, commented on the situation, stating, “Latin America has the highest preference for centralized exchanges among crypto users in the world. While this is a sign of the industry’s growth in the region, it also means these exchanges are increasingly becoming prime targets for hacks and scams.” This statement highlights the dual-edged nature of the growing interest in cryptocurrencies within Latin America, where the potential for innovation and investment is matched by significant risks.
Bitso, founded in 2014, is operational in several key markets, including Mexico, Brazil, Argentina, and Colombia. The exchange reports an impressive customer base of 8 million users, along with 1,700 institutional clients and over 500 employees. These figures reflect Bitso’s rapid growth and its commitment to providing a secure trading environment for its users.
On the other hand, Coincover, established in 2018, boasts a client portfolio of around 500 companies, including notable names such as Fireblocks, BitGo, and Ledger. This extensive experience in the security domain positions Coincover as a reliable partner for Bitso, ensuring that their digital assets are protected against emerging threats and vulnerabilities.
As cryptocurrency continues to gain traction worldwide, the partnership between Bitso and Coincover exemplifies the proactive measures that exchanges must adopt to safeguard their users’ assets. With the implementation of advanced security technologies and real-time monitoring systems, Bitso is taking significant steps to enhance its platform’s integrity and reliability, ultimately fostering a safer environment for crypto trading in Latin America.