Visa and Mastercard are reportedly pressing pause on new crypto partnerships in the wake of stunning industry collapses
- Visa and Mastercard are holding off on forging new partnerships with crypto firms, Reuters reported on Tuesday.
- The payments companies are pressing pause after a run of stunning industry collapses, such as FTX's bankruptcy.
The payment giants have each decided to delay the launch of certain crypto-related products and services until there's been an improvement in market conditions and the regulatory environment, the report said, citing unnamed sources familiar with the matter.
The crypto industry in 2022 experienced an eruption of breakdowns, including the implosion of exchange FTX and the subsequent bankruptcy of lender BlockFi. Crypto hedge fund Three Arrows Capital also filed for bankruptcy last year after defaulting on a multimillion-dollar loan.
Last week, FTX's founder Sam Bankman-Fried was hit with four more criminal charges, bringing the total to 12. Visa in November scrapped the global credit card agreements it had with FTX in the wake of the exchange's collapse.
"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," a Visa spokesperson told Reuters, adding that Visa's crypto strategy and focus haven't changed.
Reuters reported Tuesday that a Mastercard spokesperson said its 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."
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