VISA and Mastercard Increase Fees for Crypto

Buying cryptocurrency on any crypto exchange using a credit card will cost 10% more
06 February 2018   2208

Last week investors started noticing additional fees on their bank statements. Both Mastercard and VISA decided to change the way cryptocurrency purchases are processed on their networks.

Most people who purchase cryptocurrency using a credit or debit card were charged the standard 4% transaction fee. From now on customers will have to pay additional 5% fee to a credit card provider as well as 4% service fee to the exchange.

At the moment, transactions to purchase any cryptocurrency are considered  as a “cash advance” rather than a “purchase.”

Moreover, cash advances do not fall under the standard interest-free grace period that consumers expect for other credit card purchases. Cryptocurrency transactions are accrued and compounded daily. The interest rate is also higher for cash advances forming 25.99 % in one case.

This means that charges applied to any crypto purchase using a credit card will equal 10% plus interest.

By reclassifying crypto exchanges, VISA and Mastercard intend to complicate investing in cryptocurrency.

SEC to Start VanEck-SolidX BTC-ETF Consideration

Starting today, the 45-day countdown to the SEC initial decision was launched
20 February 2019   87

For the first time since August of last year, two proposals on the creation of a Bitcoin-ETF are under consideration by the US Securities and Exchange Commission (SEC).

The application of VanEck and SolidX, issued in cooperation with the Cboe BZX exchange, as expected, was included in the Federal Register issue this Wednesday, with which the 45-day countdown to the SEC initial decision was launched. The application of Bitwise Asset Management and NYSE Arca was published last week.

I … hope that our investment in regulatory and market education, hard work and commitment will be honored when the time comes.

Gabor Gurbacs

Director of digital asset strategy, VanEck

The head of Bitwise’s research department, Matt Hogan, believes that not only firms that have submitted bids to create Bitcoin-ETFs are looking for approvals, but and the entire “extremely fast-growing” crypto industry.

A year ago there was maybe one qualified crypto custodian … and now there are half-a-dozen, and that number will go up from here. A little more than year ago, we didn’t have futures. A year ago we didn’t have nearly as many firms making markets. A few months ago, you didn’t have folks like Fidelity announced in the space. It’s evolving really, really quickly.

Matt Hougan

Global head of research, Bitwise

 As reported, ultimately, however, a bitcoin ETF approval will depend on how companies approach their proposals.