U.S. payments processors Visa and Mastercard have delayed new partnerships with crypto firms amid heightened regulatory scrutiny from high-profile bankruptcies in the industry, according to a Feb. 28 report from Reuters. It comes after Mastercard explored using USD coins for payments as ties between payments giants and crypto firms heated up as cryptocurrency popularity exploded And Visa are targeting stablecoin settlements weeks before today’s development.
Both Visa and Mastercard are said to be delaying the launch of certain crypto-related products and services until market conditions and the regulatory environment improve. The delay is reportedly due to the uncertain regulatory crypto environment following the collapse of digital asset custody firms such as Celsius, FTX, Three Arrows Capital, Voyager Digital, and others within the past year.
In a tweet written by Visa head of product Cuy Sheffield, Sheffield said the Reuters report was "inaccurate" and that Visa "continues to work with cryptocurrency companies to improve fiat on/off and the progress of our product roadmap to build new products to A safe, compliant and convenient way to facilitate stablecoin payments."
Previously, both Visa and Mastercard partnered with cryptocurrency exchange Binance to issue payment cards pegged to crypto-fiat currencies. Since 2020, residents of the European Economic Area can use Binance’s cryptocurrency Visa debit card, which offers cashback. Likewise, Mastercard and Binance said they would launch prepaid crypto-fiat debit cards for Brazilian users, subject to know-your-customer verification requirements.
The exchange has also been embroiled in regulatory controversy in recent months. On Feb. 13, blockchain infrastructure firm Paxos announced that it was terminating its relationship with Binance regarding its Binance USD (BUSD) stablecoin offering. On Feb. 8, Binance suspended USD deposits and withdrawals through the Society for Worldwide Interbank Financial Telecommunication (SWIFT) channel, citing its banking partner Signature Bank and its decision to reduce exposure to cryptocurrencies.
