Mainstream Companies Limit Crypto Exposure
Visa and Mastercard, two of the world’s largest payment processing firms, have put their cryptocurrency plans on hold as the market experiences a decline, according to a report by Reuters. This move is in line with the growing trend of mainstream companies that are limiting their exposure to cryptocurrency. As we previously reported, several banks in the United States have started withdrawing their services to crypto-related businesses. Even major accounting firms have shied away from auditing the books of cryptocurrency exchanges, especially following the collapse of FTX.
Regulatory Uncertainty Adds to Visa and Mastercard’s Hesitation
The regulatory environment in the United States may also be a factor for companies like Visa and Mastercard. Since the beginning of the year, the US Securities and Exchange Commission (SEC) has taken an aggressive stance against the crypto sector. This has led to increased scrutiny on various crypto companies, including Coinbase and Ripple. The regulatory uncertainty surrounding cryptocurrency in the United States has made it difficult for businesses to navigate this complex landscape.
Companies such as Visa and Mastercard are not the only ones who have put their crypto plans on hold. Last week, the Wall Street Journal reported that Goldman Sachs has delayed its plans to launch a cryptocurrency trading desk. These delays come amid a broader decline in the crypto markets, which have been largely bearish for the past few months.
Source: The Block
