The two payment giants, MasterCard and VISA, have classified virtual currencies and Initial Coin Offering ( ICO ) into a so-called "high risk" asset class. It may be that the Forex suffer the same fate.
A disabling classification
For security reasons, MasterCard would have lengthened ( since last April ) at 540 days the chargeback period for payments sent to high-risk securities dealers. Visa wishes to replicate this initiative by December 2018.
Blockchain industry is the primary target of this classification especially for those operating from unregulated or unregulated jurisdictions.
According to the broker complaints register in May, Mastercard had e-mailed its payment processors these changes, reiterating "any cryptocurrency-related business that operates unlicensed in their given jurisdiction will enter a new category. "
"However, issuers (of securities) will be allowed to carry out transactions in areas where they have a legal license. And, they are required to provide proof that they have legitimate authorization to operate in a jurisdiction. "Several companies and stock exchanges have previously informed their customers that they will no longer be able to accept deposits by credit card. As a result, customers become fully dependent on bank transfers and alternative payment providers until a viable solution is offered.
These measures come at a time when European brokers are pushing for a new regulatory framework governing investments in digital assets. However, some centers continue to sell "risky investment products" on behalf of unregulated companies.
Mistrust !
In a recent interview, the US economist Nouriel "Dr. Doom" Roubini abused crypto-currencies by comparing them adversely to the traditional financial market and arguing that [...] Ethereum (ETH) is a scam.
As for MasterCard CEO Ajay Banga, he condemned the industry by labeling crypto-currency projects as trash because of their volatility and their inability to function as a means of payment.
What do you think of MasterCard and Visa entering the war against the cryptocurrency industry? React in the comments!
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