Mastercard and Visa are suspending connections with crypto companies after several major crashes over the past year, news agency Reuters said.
On the evening of February 28, the newspaper Reuters reported that both Mastercard and Visa are “cooling off” to the crypto sector after much of the turmoil that rocked the industry last year.
US payment giants Visa and Mastercard are slamming the brakes on plans to forge new partnerships with crypto firms after a string of high-profile collapses shocked faith in the industry, sources told @Reuters. Read more https://t.co/QI7tyhv4SG pic.twitter.com/u5TjEnpftx
— Reuters Business (@ReutersBiz) February 28, 2023
The news agency quoted a representative of Visa as saying:
“The recent standout failures in the crypto space are a wake-up call that we still have a long way to go before crypto becomes part of mainstream financial services and payments.”
In a tweet in response, the head of crypto at Visa – Cuy Sheffield confirmed that the above information is untrue, the strategy that the unit has set for this industry remains unwavering. According to Sheffield, Visa continues to work with crypto companies to build new products that facilitate stablecoin payments in a secure, compliant and convenient manner.
2/ We continue to partner with crypto companies to improve fiat on and off ramps as well as progress on our product to build new products that can facilitate stablecoin payments in a secure roadmap, compliant, and convenient way.
— Cuy Sheffield (@cuysheffield) February 28, 2023
In the past, Visa used to proposed to use StarkNet in automatic payments by the end of 2022. However, the failure of the Terra ecosystem and the FTX empire seems to have made this payment guy more cautious and cautious. Song Visa has immediately terminated its partnership with FTX immediately after a series of disasters and halting work crypto debit card rollout in more than 40 countries Latin America, Europe and Asia. Visa also recently signed a long-term agreement with crypto payment app Wirex to expand its market share in Asia Pacific (APAC) and the UK.
Last month, Mastercard announced a partnership with Binance as a prepaid crypto card in Brazil and Polygon to expand the Web3 music scene. A Mastercard spokesperson confirmed to CoinDesk that the company is still “working with partners to bring the right payment solutions and programs to market”.
The latest move from the two payment giants is said to follow the current trend, as more and more traditional businesses increase their exposure to the cryptocurrency industry. Some US banks have moved to “deny communication” with crypto businesses. Even the audited Big4 said no to major crypto exchanges like Binance…
In addition, the regulatory environment in the US is also a significant barrier affecting the decision of Visa or Mastercard. The U.S. Securities and Exchange Commission (SEC) has been consistently “attacking” the crypto sector since the beginning of this year.