Sources report that Visa and Mastercard are delaying the launch of new blockchain and crypto partnerships until market conditions improve and clearer regulatory frameworks emerge.
Mastercard and Visa postpone the launch of crypto products
On February 28, Reuters released a report showing that US payment processors Visa and Mastercard have delayed launching new partnerships with crypto companies due to the industry’s major bankruptcies that have led to increased regulatory scrutiny.
This decision comes after a period of increasing collaboration between the payment giants and crypto companies, as the popularity of cryptocurrencies exploded. For example, Mastercard examined payments in USD Coin weeks before the recent developments, and Visa focused on stablecoin settlements.
Waiting for better market conditions and regulations
According to sources, both Visa and Mastercard are said to be delaying the launch of certain products and services related to crypto until market conditions and regulations improve. The delays are reportedly not affecting their core businesses, which sources say remain strong, but are caused by the uncertain regulatory environment for crypto in light of the collapse and bankruptcies of centralized digital asset custody companies such as Celsius, FTX, Three Arrow Capital, Voyager Digital and others in the past year. A Visa spokesperson stated:
The failure of some prominent companies in the crypto sector reminds us that there is still a long way to go before crypto becomes a normal part of payments and financial services.
