Reportedly giant Card payment processor companies Visa & MasterCard are stepping away from the crypto sector temporarily citing unclear regulatory policies & regulatory hurdles.
Crypto & blockchain use cases are surging rapidly in almost every sector. Over the last few years, the majority of the Fintech companies showed their Inclination toward crypto & blockchain technology and also increased their collaboration with crypto companies. MasterCard & Visa like payment processor companies also established multiple partnerships with several crypto companies & also established their corresponding blockchain team.
On 28 Feb 2023, Reuters reported on behalf of an anonymous source that MasterCard & Visa planned to hold their ongoing crypto-focused works citing the bad market situation.
The report noted that many crypto companies faced enforcement actions by the US regulatory bodies and also many crypto companies failed to survive under highly volatile situations & filed for bankruptcy. All these things shook the confidence of these companies, so for now these companies will first wait to see crypto regulatory clarity and later will go forward with a crypto push.
A Visa official reportedly said that recent failures in the crypto industry are just an indication for them to understand the future of the established crypto market journey, which is very long, where we will see crypto as an important part of the payment system.
A MasterCard spokesperson reportedly said that the company will continuously focus on blockchain focussed development and also will try to bring efficient ways to implement blockchain in the payment system.
“Our efforts continue to focus on the underlying blockchain technology and how that can be applied to help address current pain points and build more efficient systems.”MasterCard official said
In the last two weeks, stablecoin company Paxos, and crypto trading service provider companies Kraken & Robinhood faced regulatory pressure over their crypto services.
Read also: Elon Musk fan launches a new AI token