Mastercard to Float New Compliance Product alongside CipherTrace
Godfrey Benjamin Oct 05, 2022 03:05
Mastercard has partnered with its newly acquired subsidiary, CipherTrace, to launch a new product called Crypto Secure, helping banks assess the risk of crime associated with crypto merchants on its network.
American multinational financial services corporation Mastercard has partnered with its newly acquired subsidiary, CipherTrace, to launch a new product called Crypto Secure that helps banks assess the risk of crime associated with crypto merchants on its network.
This latest product is the company’s direct attempt to stem the growing incidence of criminal activities perpetrated through exchanges. CNBC reported that participating banks would block illicit transactions emanating from crypto exchanges integrated with the Mastercard payment network through the service.
CipherTrace, known as a major security outfit helping governments and organizations combat crime in the blockchain ecosystem, will be powering the new offering using a set of advanced Artificial Intelligence (AI) technology.
The Crypto Secure product will help stakeholders determine the crime risk associated with crypto exchanges on the Mastercard payment network. The data that the AI algorithm will draw on will be derived from on-chain data sourced from linked blockchains.
As detailed by CNBC, the Crypto Secure product will present a dashboard to participating banks. It will brandish a colour-coded representation of the level of risks associated with transactions emanating from trading platforms. For more straightforward profiling, ‘Red’ means the severity of risk is high, while ‘Green’ means it is low.
Mastercard is a major stakeholder in the current crypto ecosystem, enabling payment transactions on the majority of the trading platforms connected to its network. With the prevalence of crimes, including money laundering activities on exchanges today, the Crypto Secure product will seek to help restore the much-needed sanity as dubious traders will further find it difficult to move funds around.
Mastercard’s exploits alongside CipherTrace, which it acquired last year, are not a pioneering advancement in the crypto ecosystem. As a security startup in the industry, CipherTrace has launched a series of related products to help track illicit transactions across the board.
The Crypto Secure product will be one that will have wider accessibility through the global influence of Mastercard.
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