In a significant move to strengthen digital asset protection, Bitso — Latin America’s leading cryptocurrency exchange — has announced a strategic partnership with Coincover, a pioneering blockchain security firm. This collaboration is set to redefine safety standards in the region’s rapidly growing crypto market by integrating advanced, non-custodial protection mechanisms directly into Bitso’s infrastructure.
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Strengthening Security in a High-Risk Landscape
The crypto industry continues to face mounting security challenges, particularly for centralized exchanges that manage vast volumes of user funds. In Q2 2024 alone, global crypto losses reached $572 million — more than double the $220 million reported during the same period the previous year. Alarmingly, 70% of these losses stemmed from breaches targeting centralized platforms.
For Latin American users, where 50.3% view cryptocurrencies as long-term savings tools rather than short-term trading vehicles, the need for robust security is even more critical. These investors expect their assets to be safeguarded over time, making platform reliability a key factor in user trust and adoption.
Bitso’s integration with Coincover directly addresses these concerns by introducing multi-layered protection protocols designed to prevent and recover from potential disasters — including cyberattacks, system failures, and lost access scenarios.
Non-Custodial Disaster Recovery Through MPC Technology
At the core of this partnership is Coincover’s seamless integration with Bitso’s multi-party computation (MPC) architecture. Unlike traditional custodial models, MPC distributes cryptographic key shares across multiple parties, eliminating single points of failure and reducing the risk of unauthorized access.
With Coincover’s disaster recovery solution now embedded within this framework, Bitso can swiftly restore access to digital assets in the event of operational disruptions — without compromising user control or private key ownership. This non-custodial approach ensures that security enhancements do not come at the cost of decentralization principles.
This level of automated, real-time recovery capability sets a new benchmark for resilience in the Latin American market, where regulatory expectations and user demands for transparency are steadily rising.
Real-Time Risk Monitoring with Coincover’s Risk Engine
Beyond disaster recovery, Bitso is deepening its integration with Coincover’s Risk Engine — a powerful tool that monitors outgoing transactions in real time. By analyzing behavioral patterns, transaction metadata, and threat intelligence feeds, the system actively identifies suspicious activities such as phishing attempts, malware-related transfers, and known scam addresses.
When potential threats are detected, the Risk Engine triggers immediate mitigation measures, including transaction blocking or enhanced authentication requirements. This complements Bitso’s existing fraud prevention systems and adds an extra layer of defense that goes beyond conventional security tools available today.
Crypto firms operating in high-adoption regions like Latin America cannot afford reactive security models. With centralized exchanges being prime targets due to their concentration of funds, proactive risk detection is no longer optional — it's essential.
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A Strategic Milestone for Both Companies
This partnership marks a major milestone for both Bitso and Coincover. For Bitso, it reinforces its position as a safety-first exchange that exceeds minimum compliance standards to deliver genuine peace of mind to its users. As cyber threats evolve in sophistication, Bitso’s proactive investment in cutting-edge security underscores its commitment to long-term trust and sustainability.
For Coincover, the collaboration accelerates its expansion into Latin America — one of the most dynamic crypto markets globally. With regional users showing strong preference for centralized platforms, there is immense opportunity to scale blockchain protection solutions that meet institutional-grade standards.
Nano Rodriguez, Head of Strategic Alliances at Bitso, emphasized the importance of this move:
“As we continue to grow and expand our services, ensuring the safety and security of our customers’ digital assets remains our top priority. By partnering with Coincover, we are reinforcing our commitment to providing a secure and trusted platform for our users. This collaboration allows us to offer unparalleled protection and peace of mind, making Bitso the most reliable cryptocurrency exchange in Latin America.”
Digby Try, Senior Vice President at Coincover, echoed this sentiment:
“Blockchain protection is an absolute necessity for crypto firms, rather than merely a ‘nice-to-have’. 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. It is essential that crypto exchanges can give their customers complete reassurance that their funds are safe from these threats, or they risk giving competitors an edge. Our partnership will give Bitso’s customers the gold standard for asset protection and represents another major milestone in our mission of building greater trust, confidence, and safety in crypto.”
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Frequently Asked Questions (FAQ)
Q: Why is security especially important for crypto users in Latin America?
A: Many Latin American investors use cryptocurrencies as long-term savings tools rather than for daily trading. This makes asset protection over time a top concern, increasing demand for secure, trustworthy platforms.
Q: What is non-custodial disaster recovery?
A: It’s a security mechanism that allows users or platforms to regain access to digital assets after a loss event — such as hardware failure or key deletion — without relying on a third party to hold private keys.
Q: How does MPC enhance crypto security?
A: Multi-party computation (MPC) splits private keys into multiple parts distributed across different locations. This prevents any single point of compromise and reduces the risk of theft or unauthorized access.
Q: What does Coincover’s Risk Engine do?
A: It monitors outgoing cryptocurrency transactions in real time, using advanced analytics to detect and block potential threats like scams, phishing attacks, or malware-related transfers.
Q: Is Bitso the first LatAm exchange to partner with Coincover?
A: While other exchanges may adopt similar technologies, Bitso’s comprehensive integration with Coincover represents one of the most advanced implementations in the region to date.
Q: How do real-time monitoring tools help prevent crypto losses?
A: By identifying suspicious behavior before funds are irreversibly sent, these systems enable timely interventions — such as alerts or transaction halts — significantly reducing successful fraud attempts.
Final Thoughts
As the Latin American crypto ecosystem matures, security must evolve beyond basic compliance. Bitso’s partnership with Coincover exemplifies how forward-thinking exchanges are leveraging innovative technologies — from MPC-based key management to AI-driven risk engines — to build safer, more resilient platforms.
For users, this means greater confidence in storing and managing digital assets. For the industry, it sets a precedent for what true security leadership looks like in the decentralized age.