• Security for crypto payments through risk assessment
• Transactions classified as criminal are color coded
• Benchmark rating for crypto exchanges
MasterCard wants to be a bridge builder between the traditional financial world and the crypto world. With its “Crypto Secure” software, the credit card giant offers financial institutions the ability to identify existing crypto risks and any service providers that have already become suspect, so that they can then take appropriate protective measures.
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“At MasterCard, trust is our business and as cryptocurrencies become more integrated into our daily lives, this is an exciting next step in our journey,” said MasterCard Cyber and Intelligence President Ajay Bhalla, explaining the company’s motivation.
The press release further states, “Crypto Secure will provide card issuers with a platform to access insights that improve the security of crypto purchases, increase consumer confidence, and inspire the same trust they expect when paying with MasterCard.”
Risk assessment using color coding
Apart from major US crypto exchanges such as Coinbase or Robinhood, which are subject to certain regulatory mechanisms, many crypto trading platforms are much less well known and regulated. It is not uncommon for these to be international offshore exchanges that are not subject to any regulatory scrutiny and are therefore difficult for financial institutions to assess.
In partnership with crypto crime subsidiary CipherTrace, MasterCard aims to show its customers portfolio-level crypto risk using a single score. “Crypto Secure” accesses blockchain data and colors the risk of criminal transactions related to crypto exchanges on the dashboard. In this way, MasterCard customers should be able to instantly read and compare approved and rejected transactions from individual exchanges and service providers. The aim is to obtain a benchmark rating for the service providers in the industry.
According to the Chainanalysis data report, there was an almost 80 percent increase in illicit transactions in the crypto sector in 2021 compared to the previous year. The $14 billion figure associated with illicit crypto transactions is strong motivation for MasterCard to provide its customers with tools to better assess risk.
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