In the evolving landscape of Web3, where decentralization, blockchain technology, and digital assets are becoming increasingly prominent, security remains a critical concern. While Web3 promises to revolutionize industries by offering greater transparency, autonomy, and innovation, it also introduces new risks, especially when handling sensitive data and financial transactions. Payment Card Industry Data Security Standard (PCI DSS), traditionally associated with the protection of cardholder data in centralized financial systems, is highly relevant in this new context as well. The core principles of PCI DSS — such as securing sensitive information, controlling access, and regular auditing — can be applied to safeguard critical financial and user/server data within Web3 ecosystems, helping mitigate threats and ensuring compliance in decentralized applications and blockchain-driven environments. Understanding and implementing PCI DSS standards in Web3 could be the key to establishing trust, preventing breaches, and protecting both users and assets in this digital frontier.

PCI DSS (Payment Card Industry Data Security Standard) is a security standard designed to protect cardholder data and prevent information leaks. Version 4.0 was released in 2022 and represents a significant update compared to version 3.2.1. Let's consider the key requirements, as well as the procedures auditors may ask for in both versions.

Key Changes in PCI DSS 4.0

Version 4.0 focuses on improving the flexibility of approaches, adapting to rapidly changing technological landscapes, and enhancing security controls. Unlike version 3.x, version 4.0 introduces more adaptive processes and enhanced control capabilities. Changes include:

• A new flexible approach to meeting requirements, allowing organizations to implement controls based on their own procedures.

• Stricter authentication requirements.

• Improved risk management.

Now let’s look at the key requirements that are essential for auditors in both versions.

Main Requirements of PCI DSS 3.x and 4.0

1. Protecting Cardholder Data:

   • Procedures: Encryption of data, protection of data at rest and in transit, monitoring access to data storage systems. Auditors ask for the encryption policy and how sensitive data is protected.

2. Network Segmentation:

   • Procedures: Auditors verify that proper network segmentation is in place to isolate cardholder data from the rest of the IT infrastructure. They may request network diagrams and documented segmentation plans.

3. Access Control and Authentication:

   • Procedures: Includes least privilege access control, multi-factor authentication (MFA) for all users with card data access. Auditors check account management procedures, privilege assignments, and MFA enforcement.

4. Vulnerability and Patch Management:

   • Procedures: Regular vulnerability scanning, patch management, and updates. Auditors request vulnerability scan reports, patch logs, and procedures for vulnerability management.

5. Event Monitoring and Logging:

   • Procedures: Logs must be collected, stored, and analyzed for suspicious activity. Auditors request log data and procedures for monitoring security events.

6. Security Testing and Auditing:

   • Procedures: Regular penetration tests, firewall configuration reviews, and other security measures. Auditors review test documentation and verify that all vulnerabilities have been addressed.

7. Staff Training:

   • Procedures: All staff handling cardholder data must receive regular security training. Auditors request evidence of regular training and staff security awareness monitoring.

Additional Requirements in PCI DSS 4.0

1. Risk-Based Approach:

   • Procedures: Organizations must conduct regular risk assessments and develop mitigation plans. Auditors ask for risk assessment plans and analysis of how identified risks are addressed with security measures.

2. Dynamic Testing and Continuous Monitoring:

   • Procedures: PCI DSS 4.0 introduces more dynamic processes for security control, such as adaptive system testing methods. Auditors may request evidence of how these new dynamic approaches are used to enhance security.

3. Continuous Performance Monitoring:

   • Procedures: 4.0 introduces stricter requirements for continuous monitoring of critical systems, including the use of automation tools for incident tracking. Auditors may request monitoring reports and alerting systems used by the organization.

4. Authentication and Identity Management Requirements:

   • Procedures: PCI DSS 4.0 significantly tightens requirements for account management, including additional MFA controls and ensuring least privilege access. Auditors will review the configuration of all accounts, access levels, and authentication settings.

Documents Required by Auditors:

1. Security Policies: Complete information security policies, including encryption, network segmentation, access control, and authentication policies.

2. Logs: Security event logs, incident records, authentication logs, and system access logs.

3. Vulnerability Reports: Results of vulnerability scans, penetration tests.

4. Network Diagrams: Documented network architectures, segmentation to protect cardholder data.

5. Change Management Documentation: Procedures for configuration changes and software updates, including patch management.

6. Penetration Testing Reports: Data from regular system vulnerability testing.

What Needs to Be Provided:

• Policies for each of the requirements.

• Proof of procedure execution in the form of logs, reports, test results.

• Documentation proving regular training and staff awareness programs.

• Audit reports and self-assessments of PCI DSS compliance.

Following these regulatory procedures ensures compliance with both 3.x and 4.0 versions of PCI DSS and is crucial for successfully passing an audit.