Mastercard has announced a new service that aims to bring more trust to cryptocurrency transactions. By using the Mastercard Crypto Credential service, which ensures compliance with the Financial Action Task Force travel rule, crypto wallets can be identified and transactions verified. In its first cross-border use case, the service will facilitate transfers between countries of digital assets, with wallet providers Bit2Me, Lirium, Mercado Bitcoin, and Uphold partnering with Mastercard on an initial project to enable transfers between the US and Latin America and the Caribbean corridors.
Greater Compliance in Cryptocurrency Transactions
Mastercard is aiming to establish common standards for attestation of interactions and reassure users of the reliability of their cryptowallets. It’s hoped that the transactions will also comply to sufficient levels to secure users’ trust in those they are trading with, providing transfer verification to receipts of various kinds. The Mastercard Crypto Credential service carries out due diligence checks required for such transactions to occur between parties. Using a set of common standards, digital signatures can confirm compliance with recognized legal standards such as those demanded by the FATF of its worldwide users’ transfers.
The Partnership with CipherTrace
To use this service, one set of trusted users’ transactions must be compliant mandates – such as anti-corruption or anti-money laundering requirements necessary in transfers. Mastercard utilizes CipherTrace for analysis of user financial data and track large sums of digital assets that cross exchanges. CipherTrace offers them crypto-powered compliance with federal or transnational trade procedures at fatily steps, while decentralized protocols guarantee their biggest step. Wallet providers will be partnering with Mastercard. Mercado, which offers bitcoin as the firw token or the traditional wallet, aims to streamline the new user cryptocurrency entry service for users.
Beyond Cross-Border Transactions Jobs
Mastercard Crypto Credentials plans to extend its services such as NFT transactions. The new service by Mastercard paired with CipherTrace aims to establish a broader system of regulation and security for all manner of cryptocurrency related transactions. Mastercard has also gone in partnerships with several blockchain organisations for these use cases. The entities engaged are Aptos Labs, Ava Labs, Polygon, and the Solana Foundation.
[h/t Ian Allison]