Response to the Upcoming Payment Security Measures from Innovative Payment Provider and Cuscal
19 June 2023
An innovative payment provider, partnered with Cuscal as its backend banking support, has recently circulated a survey to digital currency exchanges which refers to changes to Cuscal’s merchant terms. Blockchain Australia supports efforts to enhance and promote secure digital transactions while still preserving users’ freedom to decide how to spend their own money and use their own assets.
Blockchain Australia Chair and Digital Assets Lawyer Michael Bacina said “In a time of growing economic uncertainty, scams and fraud across the economy are expected to increase. Australians rightly expect businesses they deal with to pitch in to help tackle this problem, but they also expect to be able to spend their money and use their assets as they choose, without undue restrictions. Striking a balance requires evidence-based decision-making so that the costs of protection are proportionate to the benefit that protection brings.”
The survey referred to above asks DCEs for documents like AML/CTF programs and fraud policies that AUSTRAC registered Australian DCEs already have in place, as well as fraud policies and procedures. Blockchain Australia supports and recommends that all DCEs have best-in-class procedures of this kind and our DCE certification process also requires that these documents be in place and auditors be engaged for assurance purposes.
The survey goes on to expressly refer to new requirements which appear to only be targeted to digital currency exchanges, specifically:-
- A 24 hour hold on first time inbound payments of any size;
- A 24 hour delay on outbound payments of any size;
- Unspecified transaction limits on DCE payments;
- Name matching for “payer to wallet” requirements;
- Real time verification of user identity;
- Whether transfers of funds are permitted to anonymous wallets.
Details are not available as to key matters such as what transaction limits will apply and what standards will be required for DCEs to determine what is or what is not an ‘anonymous wallet’.
Australian DCEs are deeply committed to maintaining the highest levels of security and monitoring accounts and activity to reduce the risk of scams and fraud, including by using blockchain monitoring tools to identify suspicious wallets.
Further to our press release of 14th June 2023, we have invited Cuscal to the Banking and Digital Currency roundtable on 27 June 2023, taking place during Blockchain Week, to discuss the above matters and incoming changes.
All Blockchain Australia members are encouraged to reach out to Director Jackson Zeng to contribute information and data to this ongoing effort to keep Australians safe and keep Australians benefiting from this exciting technology.