Visa and Mastercard Suspend New Crypto Partnerships Amid Regulatory Uncertainty

Based on a Reuters article from Feb. 28th, Visa and Mastercard have postponed their planned associations with cryptocurrency companies due to prominent insolvencies in the industry causing extra regulatory checks. This decision comes shortly after the rise in recognition of digital currencies, with Mastercard exploring payments in USD Coin, and Visa proposing to facilitate stablecoin settlements.

Visa and Mastercard have reportedly decided to put the release of particular crypto products and services on hold until the regulatory landscape around digital assets and the financial markets in general become more stabilized. A spokesperson from Visa made clear their outlook on the current situation, saying that the numerous bankruptcies in the crypto industry are a reminder that there is still much work to be done before cryptocurrency can be seen as a mainstream form of payment and banking.

Cuy Sheffield, head of product at Visa, tweeted that the Reuters report is inaccurate, and that Visa remains committed to working with crypto companies to enable more convenient and compliant fiat and stablecoin payments in the future.

Before, Binance collaborated with both Visa and Mastercard to create payment cards that are linked to cryptocurrencies and fiat currencies. Starting from 2020, Binance's Visa debit card that enables crypto transactions has been offered to individuals living in the European Economic Area with some incentives. Additionally, Mastercard and Binance announced that they intend to release a crypto-fiat debit card that is prepaid for Brazilian users who satisfy the know-your-customer verification requirements.

In recent months, the exchange has been involved in regulatory issues. For example, on February 13th, Paxos, a company that provides blockchain infrastructure, announced that it would no longer work with Binance due to concerns about the issuance of Binance USD stablecoin (BUSD). Additionally, on February 8th, Binance temporarily halted deposits and withdrawals of US dollars over the SWIFT network, as its banking partner, Signature Bank, had reduced its exposure to cryptocurrency.