Mastercard has announced plans to expand its cryptocurrency payment card program by partnering with more crypto firms. The company has already partnered with several crypto exchanges such as Binance, Nexo, and Gemini to offer crypto-linked payment cards in some countries. According to Mastercard’s head of crypto and blockchain, Raj Dhamodharan, the company has dozens of partners worldwide who offer crypto card programs, and they continue to expand.
Banks have become increasingly wary of crypto clients after a number of big crypto firms collapsed last year. US regulators are also cracking down on what they say is a lack of compliance in the crypto market. In March, the US Commodity Futures Trading Commission sued Binance, the world’s largest crypto exchange, for operating an “illegal” exchange and a “sham” compliance program.
Dhamodharan declined to comment on Binance specifically but said any card program “goes through full due diligence” and is continuously monitored. Some banks, including Santander and NatWest, limit the amount of money UK customers can transfer to cryptocurrency exchanges to protect consumers from scams and fraud.
In November, rival Visa severed its global credit card agreements with FTX. American Express also said in February that it did not see crypto replacing its main payment and lending services in the near term. However, Mastercard is not considering imposing restrictions on the amount of money that could be transferred to crypto exchanges using its payments network.
Mastercard’s network users go through several compliance checks, and the company has invested in crypto analytics technology. Mastercard is “really quite enthusiastic” about the underlying blockchain technology that powers cryptocurrencies and thinks more regulated money will come to this.
For the latest tech news, follow Techbar Nepal on Facebook, and Instagram.
For Digital Products and Services: Maurisys Software.
