Mercadolibre Inks Partnership With Mastercard to Secure Its Crypto Ecosystem in Brazil – Mercadolibre, a leading Latam e-tailer, has teamed up with Mastercard, a credit technology company, to improve its risk assessment on its cryptocurrency trading platform.
The company, which initiated cryptocurrency trading through its own payment system, Mercado Pago, will utilize Mastercard’s technology to track transactions on its trading services in order to avoid money laundering and other crimes.
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According to a press release issued by Mastercard, the technology acquired through the acquisition of Ciphertrace, a blockchain auditing business, would allow Mercadolibre to monitor, identify, and assess risks while assisting the retailer in meeting its regulatory duties.
Paula Arregui, Mercado Pago’s senior vice president and COO, said on the relevance of this partnership for the improvement of their products:
“We aim to break down further barriers and provide a simple and secure experience with crypto assets, in keeping with our goal of democratizing trade and financial services. Our partnership with Mastercard improves financial education, user experience, and industry transparency.”
According to Mastercard Brazil, Brazil is one of the hottest cryptocurrency marketplaces in Latin America, with strong levels of adoption. In Latam environments and in the country, where the government is working to adopt a cryptocurrency bill later this year, compliance and due diligence are becoming increasingly vital.
Ajay Bhalla, President of Cyber and Intelligence at Mastercard, commented on the compliance issue:
“The potential for cryptocurrencies to transform our daily lives is enormous, but each interaction and experience must be safeguarded.”
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In January, Mercadolibre began investing in cryptocurrencies, announcing significant investments in Paxos, a tokenization company, and Mercado Bitcoin, a Latam-based bitcoin exchange. Furthermore, in April, the company purchased $7.8 million in bitcoin for its Treasury.
