Visa and Mastercard End New Crypto Partnerships – Report

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According to a Reuters report published on Feb. 28, U.S. payment processors Visa and Mastercard have delayed launching new partnerships with crypto companies due to high-profile industry bankruptcies that have led to heightened regulatory scrutiny. The move follows a period of heated relations between payment giants and crypto firms as the popularity of cryptocurrencies exploded, with Mastercard exploring USD Coin (USDC) payments and Visa targeting stablecoin settlements of weeks before today’s development.

Visa and Mastercard are reportedly delaying the launch of certain crypto-related products and services until market conditions and the regulatory environment improve. The delays are believed to be due to an uncertain crypto regulatory environment following the collapse and bankruptcies of digital asset custody companies, such as Celsius, FTX, Three Arrows Capital, Voyager Digital and others, over the past the last year. According to a Visa spokesperson:

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

In a tweet written by Cuy Sheffield, chief product officer at Visa, Sheffield says the Reuters report is “inaccurate” and that Visa “continues to partner with crypto companies to improve fiat on-ramps and exits.” as well as advancing our product roadmap to create new products that can facilitate stablecoin payments in a secure, compliant, and convenient way.”

“Despite the challenges and uncertainty in the crypto ecosystem, our view has not changed that fiat digital currencies running on public blockchains have the potential to play an important role in the ‘payments ecosystem.’

Previously, Visa and Mastercard both partnered with cryptocurrency exchange Binance to issue crypto-fiat related payment cards. As of 2020, Binance’s cryptocurrency Visa Debit Card is available to residents of the European Economic Area with cashback teasers. Similarly, Mastercard and Binance have announced that they will launch a prepaid crypto-fiat debit card for Brazilian users who pass the Know Your Customer verification requirements.

The exchange has also been embroiled in regulatory controversies in recent months. On February 13, blockchain infrastructure company Paxos announced that it would end its relationship with Binance regarding the issuance of its Binance USD (BUSD) stablecoin. Binance temporarily suspended US dollar deposits and withdrawals on Society for Worldwide Interbank Financial Telecommunications (SWIFT) channels on Feb. 8, citing its banking partner, Signature Bank, and its decision to reduce crypto exposure. -cash.

Update February 28, 2023 20:50 UTC: Added a statement from Cuy Sheffield, Head of Crypto at Visa.

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