Breaking: Visa and Mastercard halt new crypto partnerships — Report

According to a Reuters report printed on Feb. 28, American cost processors Visa and Mastercard have delayed the launch of recent partnerships with crypto corporations as a consequence of high-profile bankruptcies within the trade that led to elevated regulatory scrutiny. The transfer follows a interval of warming relations between cost giants and crypto corporations as the recognition of cryptocurrencies exploded, with Mastercard exploring funds in USD Coin (USDC) and Visa targeting stablecoin settlements weeks before today’s development. 

Both Visa and Mastercard are said to be pushing back the launch of certain products and services related to crypto until market conditions and the regulatory environment improve. The delays are reportedly due to an uncertain regulatory crypto environment following the collapse and bankruptcies of digital asset custodial firms, such as Celsius, FTX, Three Arrows Capital, Voyager Digital and others, within the past year. According to a spokesperson at Visa: 

“Recent high-profile failures in the crypto sector are an important reminder that we have a long way to go before crypto becomes a part of mainstream payments and financial services.”

Previously, Visa and Mastercard both partnered with cryptocurrency exchange Binance to issue crypto-fiat-linked payment cards. Since 2020, Binance’s cryptocurrency Visa debit card has been available to residents of the European Economic Area with teaser cashbacks. Equally, Mastercard and Binance stated they’d launch a pay as you go crypto-fiat debit card for Brazilian customers that move know-your-customer verification necessities. 

The trade has additionally turn into embroiled in regulatory controversies in current months. On Feb. 13, blockchain infrastructure firm Paxos introduced it might finish its relationship with Binance over the issuance of its Binance USD (BUSD) stablecoin. On Feb. 8, Binance briefly suspended U.S. greenback deposits and withdrawals over Society for Worldwide Interbank Monetary Telecommunications (SWIFT) channels, citing its banking associate, Signature Financial institution, and their resolution to cut back cryptocurrency publicity. 

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