Mastercard Launches New Service to Ensure Verifiable and Compliant Crypto Transactions
by Mastercard Crypto Credential will enable cross-border transfers of digital assets between countries while maintaining compliance with regulatory requirements.
The launch of Mastercard Crypto Credential has been announced by the payment processing giant, Mastercard in Consensus 2023. This new service is intended to ensure compliant and verifiable transactions between users’ wallets, with a particular emphasis on cross-border transfers of digital assets between countries.
Compliance with Regulatory Requirements
The Mastercard Crypto Credential service will incorporate CipherTrace’s blockchain analytics technology, which Mastercard acquired in late 2021. This technology will enable the service to comply with regulatory requirements, including the “travel rule” established by the Financial Action Task Force. The travel rule requires crypto service providers to transmit personally identifiable information for both the sender and recipient when crypto transactions exceeding $1,000 are made. The Mastercard Crypto Credential service will ensure compliance with this requirement and similar regulations.
Identifying Wallets in Transactions
According to Raj Dhamodharan, the executive overseeing crypto products and blockchain at Mastercard, the Mastercard Crypto Credential service is designed to identify wallets in transactions, simplifying the process of exchanging information about the other party. Dhamodharan explained that when two individuals wish to transfer value across borders, the level of compliance and verification required can be quite complex. The service will help address this challenge by identifying wallets and facilitating the exchange of necessary information between parties.
Collaboration with Wallet Providers
Mastercard has teamed up with Bit2Me, Lirium, Mercado Bitcoin, and Uphold, all wallet providers, to introduce the Mastercard Crypto Credential service. As part of an initial project, the collaboration aims to enable transfers between corridors spanning the US, Latin America and the Caribbean.
Expansion to Other Use Cases
According to Dhamodharan, the Mastercard Crypto Credential service will expand to include additional use cases in the future, such as NFT transactions. He also stated that Mastercard is collaborating with Aptos Labs, Ava Labs, Polygon, and the Solana Foundation, all public blockchain network organizations, to explore other possible use cases for the service.
Conclusion
The launch of the Mastercard Crypto Credential service is a significant development for the crypto industry, as it will make it easier for users to comply with regulatory requirements while facilitating cross-border transfers of digital assets. The collaboration with wallet providers and public blockchain network organizations will enable the service to expand to other use cases and provide even greater value to users.
Disclaimer
The information presented in this Blogpost is solely for educational and informative purposes and should not be misconstrued as investment, financial or legal advice. Cryptocurrencies are a highly unstable and speculative market and their worth is susceptible to substantial fluctuations. Therefore, it is advisable to conduct personal research and seek counsel from qualified experts before making any financial decisions.
