Crypto

Visa and Mastercard halting crypto product plans

Published

3 weeks ago

March 1, 2023

ticker NEWS

Two of the biggest credit card companies are slamming the brakes on crypto

Visa and Mastercard are pushing back the launch of certain products and services related to crypto after a string of high-profile collapses rocked the industry and shook faith in the sector.

Both companies will halt plans to forge new partnerships with crypto firms until market conditions and the regulatory environment improve.

Over the past couple of years, major credit card firms had warmed up to crypto as the popularity of the asset class exploded, with some touting it as the next big thing in finance.

Mastercard had teamed up with crypto lender Nexo in April to launch what it called the world’s first “crypto-backed” payment card.

And in October, Visa partnered with then mega-hot exchange FTX, founded by so-called crypto wunderkind Sam Bankman-Fried.

But by the end of 2022, the crypto industry saw a stunning reversal of fortunes – with industry majors BlockFi and FTX famously going belly-up, and Bankman-Fried charged with orchestrating one of the largest financial frauds in history.

A spokesperson for Visa says that 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.”

Crypto

SEC sues Jake Paul over paid crypto promotions

Published

42 mins ago

March 23, 2023

ticker NEWS

The issue is all linked to Tron founder Justin Sun

The U.S. Securities and Exchange Commission (SEC) is suing YouTube personality Jake Paul over a promotion of cryptocurrencies linked to Tron founder Justin Sun.

The SEC is accusing Paul of a paid promotion of assets without disclosing those payments to the public.

Other celebrities such as Lindsay Lohan, Ne-Yo and Akon and are also being investigated for their involvement.

Meanwhile, the SEC is going after Sun for potential fraud and market manipulation.

Crypto

Ted Cruz introduces bill to block U.S. CBDC

Published

23 hours ago

March 22, 2023

ticker NEWS

The Senator fears digital currencies may be susceptible to cyber attacks

U.S. Senator Ted Cruz has introduced a bill which would prohibit the U.S. Federal Reserve from moving ahead with a Central Bank Digital Currency (CBDC).

The government has been researching the possibility of a U.S. CBDC after President Joe Biden an executive order last year.

“The federal government has no authority to unilaterally establish a central bank currency,” Cruz said in announcing the bill’s introduction.

“The bill goes a long way in making sure big government doesn’t attempt to centralise or control cryptocurrency and instead, allows it to thrive in the United States.

“We should be empowering entrepreneurs, enabling innovation, and increasing individual freedom – not stifling it.”

Cruz added that unlike decentralised cryptocurrency like Bitcoin, digital currencies created by the government are centralised and could be more vulnerable to cyber attacks.

Crypto

FTX sues liquidators in the Bahamas

Published

2 days ago

March 21, 2023

ticker NEWS

The liquidators argue they took on a more prominent role before the collapse

Crypto exchange FTX has sued the liquidators overseeing its wind-down in the Bahamas.

The exchange claims FTX Digital Markets are wrongly claiming ownership of certain assets.

CEO John Ray told a U.S. court that that the affiliate had no interest in FTX.com’s cryptocurrency, intellectual property and customer relationships.

The affiliate from the Bahamas was a corporate shell of former company founder Sam Bankman-Fried, who attempted to funnel customer deposits and property rights into the nation.

Liquidators have argued the affiliate took on a more prominent role when the company moved its headquarters from Hong Kong to the Bahamas.