American payment processors Visa and Mastercard have postponed the introduction of new alliances with cryptocurrency companies, according to a Reuters article from February 28. This is because a string of high-profile bankruptcy cases in the sector have raised regulatory scrutiny. The decision comes after a period of improving ties between major payment companies and cryptocurrency companies as the popularity of cryptocurrencies soared, with Mastercard looking into USD Coin payments and Visa focusing on stablecoin settlements just weeks prior to today's development.
According to reports, Visa and Mastercard are delaying the introduction of a few cryptocurrency-related goods and services until the market and the legal environment have improved. The delays, according to sources, are not related to their core business, which is still going strong, but rather to an unsteady regulatory environment for cryptocurrencies following the failure and insolvency of centralized digital asset custodial companies like Celsius, FTX, Three Arrow Capital, Voyager Digital, and others over the past year.