Crypto Card Bans A Factor in Mastercard Q1 Volume Decline

Cross-border payments volume of Mastercard was down 2 percent when compared to the last quarter of 2017, "in part due to the drop [in] crypto wallet funding"
03 May 2018   616

Financial director of Mastercard reported that in the first quarter of 2018 the volume of cross-border transactions decreased. This happened, among other things, because large banks banned customers from using their payment cards to purchase crypto-currencies. This is reported by Coindesk.

According to the disclosure of Mastercard's financial report published on Seeking Alpha, Martina Hund-Mejen said that the volume of cross-border payments of the company decreased by 2% compared to the last quarter of 2017 "in part due to the drop [in] crypto wallet funding".

So the issue in this, first of all, in terms of the stacks, on the cross-border volume growth, the cryptocurrency funding or the crypto wallet funding really was 1 percent. It was 1 percent that we saw in the fourth quarter and it was 1 percent that we saw in the first quarter. What the issue is that a number of the banks have decided, in particular in the United States, that they would not allow the usage of cards for this particular funding vehicle. And that's why we have already seen a relatively significant decrease of the volume related to that event.
 

Martina Hund-Mejen

CFO, Mastercard

In recent months, several US and Canadian banks, including JPMorgan Chase, Bank of America, Bank of Montreal, Capital One and Citi, have banned cryptocurrency transactions due to credit risks associated with the high volatility of digital currency rates.

In addition, according to CEO Ajay Banga, the decrease in the volume of cross-border payments was also contributed by new restrictions and uncertainty regarding crypto-exchanges.

Right now there's a little less interest than there was in the latter part of the fourth quarter and the first quarter. We actually said that this is not something we count on because we just don't know how to predict it or we don't even want to count it.
 

Ajay Banga

CEO, Mastercard

However, Mastercard hardly considers cryptocurrency as a means of making a profit.

SEC to Accuse Veritaseum ICO of Fraud

SEC believes that project's tokensale, thru which it raised $14.8M back in 2017-2018 had a signs of scam and company misled the investors
14 August 2019   304

The U.S. Securities and Exchange Commission (SEC) has sued New Yorker  and Veritaseum-related companies that have been caught by the agency in conducting an unregistered ICO with signs of fraud. It is reported by Cointelegraph.

According to documents published on the network, the SEC intends to hold Reggie Middleton accountable and immediately freeze the assets of Veritaseum Inc. and Veritaseum LLC.

The Commission claims that the defendants raised about $ 14.8 million through an initial coin offering (ICO) in 2017 - early 2018. At the same time, many investors were misled, as the company distorted information about the conditions of the token sale and deliberately hid some significant details.

The American regulator claims that the project still has about $ 8 million of illegally raised funds. According to the SEC, these assets must be frozen immediately.

Amid this news, the Veritaseum (VERI) rate has fallen by 70%. Now the coin is trading near the $ 5 mark, although at the beginning of 2018 its rate was approaching $ 500.

Veritaseum was created as a financial p2p platform, involving the movement of capital without traditional intermediaries. Also, VERI was positioned as a utility token for use in consulting services and access to various research works.

In 2017, Veritaseum blockchain startup fell victim to hackers, having lost $ 8.4 million from ICO investors.