Highlights:
- Mastercard has introduced the Crypto Secure service in wake of the rise in criminal activity in the emerging market for crypto assets.
- The blockchain security firm CipherTrace, which Mastercard purchased a year ago, is the company that is powering the service.
- The new solution to combat crypto frauds has been launched on Tuesday, 4th October.
Mastercard debuted a new service named Crypto Secure on Tuesday. This solution will assist banks in evaluating the potential for criminal activity related to cryptocurrency traders that use Mastercard’s network. A brand-new crypto service desk that focuses on risk assessment is aimed at providing an increased level of safety and confidence to the digital economy.
Crypto Secure is a solution that helps card issuers remain compliant with the complicated regulatory environment of the digital assets industry. It does this by combining insights and technology from CipherTrace with confidential documents. The new program’s principal objective is to provide assistance to banks in the detection and prevention of fraud that may transpire on cryptocurrency merchant networks.
According to Mastercard, the platform gives card issuers the ability to more accurately evaluate the risk tolerance of cryptocurrency exchanges and other providers. It is commonly referred to as Virtual Asset Service Providers (VASPs) and helps to select which transactions of cryptocurrency to accept.
This will make it possible for issuers to readily detect and disapprove payments with cryptocurrency traders on a case-by-case premise. This is preferable to implementing a one-size-fits-all solution, which has the chance to limit legal activities.
The blockchain security firm CipherTrace, which Mastercard purchased a year ago, is the company that is powering the service. CipherTrace, with headquarters in Menlo Park, California, is a company that assists private companies and governmental authorities in investigating potentially illegal transactions utilizing cryptocurrency. Chainalysis, a company located in New York, and Elliptic, a company headquartered in London, are its primary competitors.
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The new solution helps to assess the criminal-related risks that are associated with crypto exchanges that are a part of the Mastercard network by using artificial intelligence, data from blockchains, and official records of cryptocurrency transactions. A comparable service is currently available to assist financial institutions in managing transactions using fiat cash.
The primary objective of the new solution is to play a role in the protection of card issuers and users. Crypto Secure would provide card issuers a system that gives them access to information that will make crypto transactions safer, therefore boosting consumer confidence and generating the same level of trust that customers seek when spending with Mastercard.
Essentially, Crypto Secure is aimed to enhance the incorporation of digital currencies into regular financial services enabling crypto holders to use their investments in their everyday lives.
