Latin American Exchange Bitso Taps Coincover for Security Services

Bitso will use Coincover’s non-custodial disaster recovery service.

Latin America has the highest preference for centralized exchanges amongst crypto users in the world, becoming targets for hacks and scams, Coincover said.

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Bitso has tapped blockchain protection company Coincover to provide security for digital assets, the Latin American crypto exchange said Thursday.

Through integration with Bitso’s multiparty computation (MPC) infrastructure, Coincover will provide non-custodial disaster recovery, giving the exchange protection against events such as hacking or lost access. In addition, Bitso will use Coincover to monitor outgoing transactions in real-time.

According to data from Immunefi, more than $900 million has been lost to hacks and fraud in crypto this year, with $572 million stolen in the second quarter. That’s more than double the amount in the year-earlier period.

“Latin America has the highest preference for centralized exchanges amongst crypto users in the world. While this is a sign of the industry’s growth in the region, it means these exchanges are increasingly becoming the targets for hacks and scams,” said Digby Try, senior vice president at Coincover, in a statement.

Bitso was founded in 2014 and operates in Mexico, Brazil, Argentina and Colombia. The company claimed to have 8 million customers, 1700 institutional clients and more than 500 employees.

Founded in 2018, Coincover said it has 500 clients, including Fireblocks, BitGo and Ledger.