With the knowledge and capabilities provided by Chainalysis, we can adjust and calibrate our operational controls, settings, and monitoring. This is key to delivering the secure, streamlined experience that our clients trust us to provide.”
– Giovana Fiorin de Abreu
Director of Operations, Mercado Bitcoin
Challenge
Meeting Complex Regulatory Requirements and Ensuring a Seamless User Experience
Mercado Bitcoin, as the leading cryptocurrency and digital asset platform in Latin America, faced multifaceted challenges in its mission to democratize access to digital assets. These challenges included:
- Rapid Growth and Diverse Offerings: With over four million customers and more than 200 cryptocurrencies, Mercado Bitcoin needed to provide a simple and secure experience while meeting ever-evolving regulatory requirements.
- Regulatory Compliance: Operating in a heavily regulated industry required Mercado Bitcoin to navigate complex regulatory frameworks, educate regulators, and ensure adherence to compliance standards.
- Security and Fraud Prevention:To maintain user trust, Mercado Bitcoin had to safeguard against fraud, money laundering, and other security threats in a rapidly changing crypto landscape.
- Operational Efficiency: The need for efficient client-centric processes and continuous improvement in security controls became critical to stay ahead of the competition.
Solution
Empowering Mercado Bitcoin’s Success with Chainalysis
To overcome these challenges and optimize operations, Mercado Bitcoin turned to Chainalysis. Here’s how Chainalysis provided a robust solution aligned with Mercado Bitcoin’s business strategy:
- Regulatory Navigation and Compliance: Chainalysis enabled Mercado Bitcoin to collaborate with law enforcement, educate regulators, and proactively shape the regulatory landscape. This partnership facilitated the issuance of a payment institution license from the Brazilian Central Bank, a significant milestone.
- Enhanced Security: Chainalysis reduced the time required to identify suspects by 50% through transaction monitoring, enhanced due diligence, and the ability to adapt to new alerts based on client behavior. This improvement led to a higher accuracy rate in identifying potential fraud cases.
- Operational Efficiency: Chainalysis solutions provided constant visibility into how clients used cryptocurrency on the platform. The solutions allowed Mercado Bitcoin to gain valuable insights into client activities and investigate complex transactions effectively.
- Long-Term Viability: By partnering with Chainalysis, Mercado Bitcoin secured its position as one of the world’s most trusted exchanges. This trust was achieved by providing transparency and collaborating with government authorities to combat fraud and money laundering.
- Supporting Business Growth: Chainalysis empowered Mercado Bitcoin to confidently expand into new markets, such as Europe, and launch new products, all while maintaining a secure operating environment and understanding user behaviors.
