Mastercard announced it would debut a software product that helps banks detect and block fraudulent transactions from going through crypto exchanges, according to a report on October 4, 2022.

The new product, Crypto Secure leverages “sophisticated” synthetic intelligence algorithms to assess the risk of crime associated with crypto exchanges on the Mastercard payment network. The software runs on CipherTrace’s blockchain, which integrates artificial intelligence, cyber, and blockchain capabilities to provide crypto stakeholders with digital asset security and fraud solutions. Mastercard acquired the company behind CipherTrace on October 19, 2021.

When banks and other card issuers use Crypto Secure platform, they will arrive at a dashboard that shows color-coded ratings that represent the severity of risks associated with cryptocurrency transactions and activities. Red indicates a high level of risk while green shows a low level of risk.

However, Crypto Secure does not determine or advise how the Crypto Secure platform users should handle the cryptocurrency transactions and leaves the decision-making to the users.

Crypto Secure builds on Mastercard’s existing technology to combat fraud in fiat currency transactions.

The product was designed to align stakeholders with managing their compliance obligations in “the complex regulatory landscape” and to foster trust for digital asset transactions among its consumers, banks, and merchants, explained Mastercard’s president of cyber and intelligence business, Ajay Bhalla.

Compliance has become increasingly relevant as cryptocurrency adoption among large financial institutions and popular retailers increases. Cryptocurrency compliance is the process of following Anti-money laundering regulations (AML) by integrating tools and internal processes when operating with cryptocurrencies. This may include KYC, transaction tracing, or filing reports to regulatory bodies.

The Biden administration introduced its first-ever cryptocurrency regulation framework on 16 Sept 2022, while the European Union approved its own landmark crypto regulations.

Biden’s cryptocurrency regulation framework, called “Ensuring Responsible Development of Digital Assets,” highlighted the need to protect consumers, prevent crypto-related crime, bring down fraud, and convene government agencies to ensure the crypto space advances responsibly. It also highlighted the exploration of a U.S. central bank digital currency (CBDC).

On June 30, 2022, the EU Council and the European Parliament reached a provisional agreement on the new crypto regulation, “Markets in Crypto-Assets (MiCA), which will bring EU-based crypto-assets, crypto-asset issuers, and crypto-asset service providers (CASPs) under the framework towards the end of 2022.

Under the new regulations, CASPs must be authorized to operate within the region and comply with requirements to protect consumers’ wallets. The regulations will also subject stablecoin issuers to maintaining sufficient reserves to meet redemption requests in the event of mass withdrawals.

The post Mastercard launches new product to help banks combat crypto-related crime appeared first on CryptoSlate.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

207 +