Mastercard and Visa are holding off on their crypto integration plans in the wake of several turbulent events that have rocked the cryptocurrency space in the last year, according to Reuters.
“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,” Reuters quoted a Visa spokesperson who added that the company is still interested in the crypto space.
Both card payment firms have previously announced plans to integrate crypto into their network. Visa proposed a plan to use StarkNet for automatic recurring payments in late 2022.
However, last year's Terra ecosystem collapse and FTX bankruptcy appear to have dampened enthusiasm from both firms. Visa ended its crypto debit card partnership with FTX after the collapse of the exchange. The initial plan would have seen FTX using Visa’s crypto debit cards in over 40 countries across the globe.
Visa and Mastercard halting their crypto plans are the latest in a growing trend of mainstream businesses limiting their crypto exposure. Several banks in the U.S. have begun to withdraw services to crypto businesses. Even the major accounting firms have so far chosen not to audit the books of cryptocurrency exchanges in the wake of the FTX collapse.
The regulatory environment for crypto in the U.S. may also be another issue for companies like Visa and Mastercard. The U.S. Securities and Exchanges Commission has been on the offensive against the sector since the start of the year.
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