Mercadolibre, one of the largest “e-retailers” in Latam, has partnered with credit giant Mastercard to use its technology to protect the company’s cryptocurrency ecosystem. Through this association, Mercadolibre will be able to use Mastercard’s Ciphertrace technology to allow the company to improve the control and security of cryptographic transactions in its commercial ecosystem.
Mercadolibre to strengthen crypto surveillance
Mercadolibre, a leading Latam e-retailer, has partnered with credit technology company Mastercard to enhance its due diligence when assessing risks on 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 merchant services to prevent money laundering and other crimes.
Mastercard’s technology, which comes from the acquisition of Ciphertrace, a blockchain auditing firm, will allow Mercadolibre to monitor, identify and assess risks while helping the retailer meet its regulatory obligations, according to a press release issued by the company.
On the importance of this alliance for the improvement of its products, Paula Arregui, senior vice president and COO of Mercado Pago, stated:
In keeping with our purpose of democratizing commerce and financial services, we want to break down more barriers and offer a simple and secure experience with crypto assets. Our alliance with Mastercard improves financial education, user experience and transparency in the industry.
Compliance and Crypto Laws in Brazil
Brazil is one of the most popular cryptocurrency markets in Latin America, with adoption levels reaching high figures, according to Mastercard Brasil. Compliance and due diligence is becoming increasingly important in Latam environments and in the country, where the government is focusing on getting a cryptocurrency bill passed later this year.
On the topic of compliance, Ajay Bhalla, President of Cyber and Intelligence at Mastercard, stated:
The potential for cryptocurrencies to change our everyday experiences is huge, but every interaction and experience must be protected.
Mercadolibre has been investing in cryptocurrencies 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 alliance between Mercadolibre and Mastercard? Tell us in the comments section below.
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