International

MasterCard Takes On Bitcoin Down Under

bitcoin

MasterCard has asked Australian lawmakers to regulate Bitcoin and other cryptocurrency exchanges exactly the way it does other payments operators — complete with anti-money-laundering and consumer protection features, according to Finextra.

In a letter submitted to the Australian Senate Economics Committee, the payment-card brand argued that all payments-system participants should be regulated in the same way, and said “consumer protection, anti-money laundering, counter-terrorist financing and payments system stability should be cornerstones of any regulation of electronic payments — including digital currencies.” The letter specifically names Bitcoin and Ripple.

The Nov. 28 MasterCard letter was one of 31 submissions to the legislative inquiry.

In the letter, MasterCard division president Eddie Grobler said digital currencies currently don’t offer consumer protections such as chargebacks when a buyer pays for something that then isn’t delivered, and that the value of digital currencies fluctuate so widely that they represent a consumer risk. The block chain process is also inadequate for keeping digital currencies secure, Grobler wrote.

MasterCard called for licensing and regulation of all digital currency operators that’s comparable to the requirements for non-bank money transmitters, including obligations to maintain Know-Your-Customer and anti-money-laundering programs and to file suspicious activity reports, along with setting up consumer complaint processes.

The card brand also listed actions taken to regulate digital currencies by other jurisdictions, including the European Banking Authority, Russia, the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN), and the New York Department of Financial Services.

——————————–

Latest Insights: 

The Which Apps Do They Want Study analyzes survey data collected from 1,045 American consumers to learn how they use merchant apps to enhance in-store shopping experiences, and their interest in downloading more in the future. Our research covered consumers’ usage of in-app features like loyalty and rewards offerings and in-store navigation, helping to assess how merchants can design apps to distinguish themselves from competitors.

1 Comment

TRENDING RIGHT NOW

To Top