Payment giants Visa and Mastercard are taking a tougher stance toward potential card issuers if their activities involve digital assets. This is reported by The Block.
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Recently, both corporations have expanded their cooperation with cryptocurrency companies. In June, the processing service Wirex obtained licensed-participant status in the Mastercard network, and several projects joined Visa’s Fast Track program this year.
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However, the payment networks require potential partners to provide evidence that the digital assets they use originate from reliable sources.
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Ziglu’s CEO Mark Hipperson noted that Mastercard asked them for information on user identification, transaction monitoring and checks for fraud and money laundering.
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Wirex’s chief Pavel Matveev said that Visa tracks individual transactions to ensure the \”legitimacy of their origin.\” For this, the corporation uses tools from Chainalysis and Elliptic.
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According to a Mastercard spokesperson, the payment network operates under principles established in 2019, according to which crypto-affiliated partners must provide detailed information about the anti-fraud and anti-money-laundering measures they employ.
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Visa described this approach as ‘enhanced due diligence’.
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Back in October, the Coinbase exchange announced the launch of a Visa debit card with Bitcoin and Stellar cashback for US users.
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