The regulatory crackdown on the crypto industry by the Securities and Exchange Commission (SEC) has left its negative impact on different sectors of the crypto industry. As the community continues to remain in a FUD situation amid crypto regulations, several crypto firms are now giving up their partnership plans and putting a halt to their business expansion. In a recent report, payment giants Visa and Mastercard have sent shockwaves as they plan to suspend plans for new cryptocurrency partnerships.
A Major Setback For The Crypto Community!
Visa and Mastercard have long been at the forefront of the payments industry, leading the charge toward a more seamless, digital future. However, recent news that the two giants have decided to “slam the brakes” on their crypto innovation plans has sent shockwaves through the industry.
Visa and Mastercard have decided to postpone the rollout of new partnerships with cryptocurrency firms in response to recent high-profile bankruptcies in the industry, which have led to increased regulatory scrutiny.
The delay comes after a period of growing collaboration between the payment giants and cryptocurrency firms as the popularity of digital currencies skyrocketed. Just a few weeks ago, Mastercard explored payments via USD Coin, while Visa focused on settling transactions with stablecoins.
However, in light of current developments, both companies have exercised caution and put their plans on hold.
According to sources, Visa and Mastercard have postponed the launch of certain crypto-related products and services until the market situation and regulatory policies become more favorable.
While the delays are not impacting their core business, both companies are reportedly concerned about the uncertain regulatory landscape for digital currencies.
In addition, the recent collapse and bankruptcies of centralized digital asset custodial firms, including Celsius, FTX, Three Arrow Capital, Voyager Digital, and others within the past year, have made the situation more challenging.
Visa And Mastercard Demotivate Investors’ Sentiments
For many in the crypto community, this move by Visa and Mastercard is a setback. Some have criticized the payment giants for being slow to adapt to the changing landscape of the payments industry, while others have accused them of stifling innovation.
However, it’s important to note that Visa and Mastercard’s decision is not a blanket ban on all cryptocurrencies. Instead, it seems that the two companies are taking a cautious approach, only willing to engage with digital currencies that meet certain criteria.
An official from Visa said, “Recent high-profile failures in the crypto sector are an important reminder that we have a long way to go before crypto becomes a part of mainstream payments and financial services.”
However, the focus for both the payment giants on the crypto space remains unchanged. A spokesperson for Mastercard commented,
“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.”