VISA and MasterCard tighten the requirements for the issuers of the bitcoin card

HabBear

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Quote from: NeuroticFish on October 16, 2018, 10:16:31 AM

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According to the Broker Complaint Registry, some details of the shortly upcoming classification by MasterCard had already become public in May of this year. The registry notes that binary options, CFDs, forex, cryptocurrency options, and ICOs will fall under a new category of “High-Risk Securities Merchants” starting on Oct. 12, 2018, and will be subject to additional monitoring.

Are cryptocurrency options the same as cryptocurrencies? I am not convinced, maybe somebody with better knowledge in financial terms (and maybe native English too) can tell.

They are not, but it sounds like Visa and MasterCard are trying to be clever with how they classify the concern they have. If one thinks of cryptocurrency as a commodity, then the ability to sell that commodity for fiat currency at somepoint in the future is similar to an option. The main and important difference is that one who owns cryptocurrency is not buying a contract to buy or sell that cryptocurrency in the future at a pre-determined price.

I need to do more reading on why Visa and MasterCard are calling them "Cryptocurrency Options"...they could still restrict the use of cryptocurrencies for the reason that they don't want to deal with cryptocurrencies.

pumbum

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I think this is a temporary measure, because their cards are used to launder funds from bitcoin, which they seem to be extracted in an unfair way. it's natural.

Pab

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The grouping targets all companies that operate their businesses without licenses or do not require them, the sources report.

Nothing new .Financial services needs to be licensed whatever supporting crypto currencies or just a fiat money
All that so called bitcoin cards were from just one company from some offshore account
Wavecrest did very good money but if we want to have trustworthy cards than services supporting crypto what want to make money that way needs to follow rules and make his work
In short they need to hire real specialists from financial world and very good lawyers

BitHodler

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Quote from: Corelianer on October 19, 2018, 04:30:34 PM

I think that in soon will come the period, when visa and MasterCard will become not need...it's only a matter of time

I wouldn't recommend anyone to wait for it, simply because it won't happen. The majority of the people depend on debt, and financial institutions can benefit from blockchain technology just as much as we do.

Another aspect is that you can't offer buyers protection with Bitcoin. It's horrible for sellers (PayPal sellers know how shitty it is as well), but a killer feature for buyers. Who doesn't want that protection when buying stuff?

If you also take into consideration that they can reduce their fees significantly to compete with crypto, and that most people don't care about decentralization, you'll understand that they won't be going anywhere.

Corelianer

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I think that in soon will come the period, when visa and MasterCard will become not need...it's only a matter of time

cluit

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Quote from: BlueStackz on October 17, 2018, 02:21:10 AM

Quote from: XMLGold.eu on October 16, 2018, 08:45:45 AM

VISA and MasterCard tighten the requirements for the issuers of the bitcoin cards
Read more: https://www.xmlgold.eu/en/news/article/760/visa-and-mastercard-tighten-requirements-bitcoin-cards-issuers/

They can try as much as they want to stall the upcoming surge of the everyday usage of bitcoin but they can't run away too far. In the end no matter what happens there will be a time when bitcoin exchanges or wallets or banks or whatever you want to call it will have a system like mobile payment app or sorts and we will see a lot of new stuff for payment as well which would allow people to do all of this without the worry of visa or mastercard doing whatever they want to.

The only thing required is one crypto company and one bank agreeing on working globally on a mobile app that would allow people to do this, that's it. One agreement, one deal, one contract. As soon as that happens we are off to the races.

They obviously cannot run away for so long and they would have to come around one way or the other. At least there was a time they never really wanted anything to do with cryptocurrency as a whole and then now, we are seeing them tightening requirements for the issuers. It is a start, we sure know development will not just come up overnight and it is a gradual process.

However they want to play their cards now is best known to them, but we certainly know this is a growing space, and one way or the other it would boom more than this in the long run. They can decide to take it or leave it.

Slow death

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Quote from: XMLGold.eu on October 16, 2018, 08:45:45 AM

VISA and MasterCard tighten the requirements for the issuers of the bitcoin cards

this is already expected of them because they are not seeing many governments regulating cryptos, this has become a more political problem than a problem of competition, unfortunately. What may be beneficial for cryptos will be if more giants enter the crypto world and in the future will force many governments to regulate cryptos if that happens then we will see the Visa and Mastercard to accept cryptos.

Theb

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This is not the first time both the credit cards companies attack (or what they say "re-classify") the cryptocurrency industry. On their first time they re-labeled cryptocurrency puchases as "cash advance" and not "purchases" where in return will have bigger rates, a lot of their customers complained when they started noticing higher charges. Now they re-classify it as a means of guarantee in giving chargebacks but 540 days is really a long time for this businesses to handle as a lot of thing could happen from that duration.

LeGaulois

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"cryptocurrency" and "cryptocurrency options" are the same thing for them. They generalized the term to include different business types under the crypto activity. The article isn't telling it but the question remains what are the requirements asked to the issuers.
KYC? Don't they enough ask the customers, ID scan, selfies,... next is the nudes photos? Genealogy report back to level 8?

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Quote from: bobo012 on October 17, 2018, 03:27:12 AM

I cant wait for someone to actually get a banking licence and have its own bank. Issue its own cards and avoid visa and mastercard at all.
There is enough money in crypto to be able to do that, and be independable

So, we need a company to create a bank, issue debit cards in BTC , because that would help..or not!
You have your own bank, your wallet, you don't need cards because you can pay with BTC directly from your wallet.

Why, just why do we need a third party other than to ruin everything? To have your funds at the mercy of a company that could erase your account overnight? To pay fees to a company the same way you do now with your bank?
Really, what's the point having such bank and payment processor?

Quote from: tenebriscaelum on October 17, 2018, 10:47:57 AM

Financial companies such as them are only afraid that cryptocurrencies will take a market share in their lone of business which is being a payment option. And as you say they can only run away too far from it as more people and establishments will come to accept cryptocurrencies as payments and soon enough they will make and easier method to issue such cards.

To whom are they losing market share?
To me it actually seems they don't give a damn about the market share that is represented by bitcoin users, if they would care so much about it they would probably have not ended all the contracts with companies like Wavecrest.

upsidedown75

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Quote from: bobo012 on October 17, 2018, 03:27:12 AM

I cant wait for someone to actually get a banking licence and have its own bank. Issue its own cards and avoid visa and mastercard at all.
There is enough money in crypto to be able to do that, and be independable

Well, cryptocurrency is actually giving you the chance to do that isn't it? At least with cryptocurrency, you are your own bank without even having to obtain a license and all you just need is your full control to your wallet. You can decide to make any transaction to anyone P2P without having to go through a third party like a bank and that makes you not subjected to any spending or deposit policies that banks and government have always used to ruin a whole lot over the years.

MasterCard and VISA would come around one way or the other, a lot of things may be confusing now in the way they are playing things out, but as the space grows more, they will get to understand.

The Sceptical Chymist

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Quote from: NeuroticFish on October 16, 2018, 10:16:31 AM

Are cryptocurrency options the same as cryptocurrencies?

That all sounds like a bunch of financial technical babble to me, but those folks are well-known for spewing out such incomprehensible jargon, likely to confuse whoever is trying to read it.

However, I would say that cryptocurrency is NOT the same as cryptocurrency options. I'm pretty familiar with what stock options are, which is a contract guaranteeing you the right to buy or sell a stock at a predetermined price in the future, regardless of what the current market price is. Since I don't actively trade crypto, I'm not sure if there's an options market for crypto. At least I've never heard of anything like that.

I wish there was futures and options markets for crypto, and I also think we're moving toward having those. That's what's going to bring in the big-money investors, kind of like the proposed ETF will.

As far as the link in the OP (which I can't make heads or tails or), does there actually exist any sort of credit card based on bitcoin? My understanding is that most cards that have been offered have turned out to be scams, and I don't hear much about anyone using bitcoin credit cards.

gentlemand

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Who or what wrote that article? It reads like a mong who ran it through 37 different languages on google translate.

After what happened with Wavecrest, there's no way I'd ever leave more than spare change on any crypto debit card. Despite anything the company issuing them claims, they can evaporate any second.

manfredmann

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Why can't they support the cryptocurrency system when in fact this could be a lot of advantage to their company? A lot of bitcoin users nowadays will be able to create good numbers in their business and instead of giving the bitcoin users more accommodation in the process they are tightening the the requirements for the issuers of the bitcoin card.

Well this maybe for the safety of the concern agency regarding on bitcoin regulations for some countries have regulated cryptocurrency. We can still adjust on this new rulings to be implemented.

Cryptomilz

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Quote from: tenebriscaelum on October 17, 2018, 10:47:57 AM

Quote from: BlueStackz on October 17, 2018, 02:21:10 AM

Quote from: XMLGold.eu on October 16, 2018, 08:45:45 AM

VISA and MasterCard tighten the requirements for the issuers of the bitcoin cards
Read more: https://www.xmlgold.eu/en/news/article/760/visa-and-mastercard-tighten-requirements-bitcoin-cards-issuers/

They can try as much as they want to stall the upcoming surge of the everyday usage of bitcoin but they can't run away too far. In the end no matter what happens there will be a time when bitcoin exchanges or wallets or banks or whatever you want to call it will have a system like mobile payment app or sorts and we will see a lot of new stuff for payment as well which would allow people to do all of this without the worry of visa or mastercard doing whatever they want to.

The only thing required is one crypto company and one bank agreeing on working globally on a mobile app that would allow people to do this, that's it. One agreement, one deal, one contract. As soon as that happens we are off to the races.

Financial companies such as them are only afraid that cryptocurrencies will take a market share in their lone of business which is being a payment option. And as you say they can only run away too far from it as more people and establishments will come to accept cryptocurrencies as payments and soon enough they will make and easier method to issue such cards.

Reading that news from Visa and Mastercard, what you have posited is what I can deduce from it. They are indeed afraid of cryptocurrencies and see them as a threat to their continued existence in the long run.

tenebriscaelum

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Quote from: BlueStackz on October 17, 2018, 02:21:10 AM

Quote from: XMLGold.eu on October 16, 2018, 08:45:45 AM

VISA and MasterCard tighten the requirements for the issuers of the bitcoin cards
Read more: https://www.xmlgold.eu/en/news/article/760/visa-and-mastercard-tighten-requirements-bitcoin-cards-issuers/

They can try as much as they want to stall the upcoming surge of the everyday usage of bitcoin but they can't run away too far. In the end no matter what happens there will be a time when bitcoin exchanges or wallets or banks or whatever you want to call it will have a system like mobile payment app or sorts and we will see a lot of new stuff for payment as well which would allow people to do all of this without the worry of visa or mastercard doing whatever they want to.

The only thing required is one crypto company and one bank agreeing on working globally on a mobile app that would allow people to do this, that's it. One agreement, one deal, one contract. As soon as that happens we are off to the races.

Financial companies such as them are only afraid that cryptocurrencies will take a market share in their lone of business which is being a payment option. And as you say they can only run away too far from it as more people and establishments will come to accept cryptocurrencies as payments and soon enough they will make and easier method to issue such cards.

AmoreJaz

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Quote from: bobo012 on October 17, 2018, 03:27:12 AM

I cant wait for someone to actually get a banking licence and have its own bank. Issue its own cards and avoid visa and mastercard at all.
There is enough money in crypto to be able to do that, and be independable

Quote from: BlueStackz on October 17, 2018, 02:21:10 AM

Quote from: XMLGold.eu on October 16, 2018, 08:45:45 AM

VISA and MasterCard tighten the requirements for the issuers of the bitcoin cards
Read more: https://www.xmlgold.eu/en/news/article/760/visa-and-mastercard-tighten-requirements-bitcoin-cards-issuers/

They can try as much as they want to stall the upcoming surge of the everyday usage of bitcoin but they can't run away too far. In the end no matter what happens there will be a time when bitcoin exchanges or wallets or banks or whatever you want to call it will have a system like mobile payment app or sorts and we will see a lot of new stuff for payment as well which would allow people to do all of this without the worry of visa or mastercard doing whatever they want to.

The only thing required is one crypto company and one bank agreeing on working globally on a mobile app that would allow people to do this, that's it. One agreement, one deal, one contract. As soon as that happens we are off to the races.

yeah sooner or later, the usage of visa or mastercard will not be necessary especially when it comes to dealing with cryptocurrencies. i believe also that one legit strong crypto company and one bank can do that job. and from that moment, visa or mastercard providers might re-think their decisions towards cryptocurrencies. else, they will be left behind because of the growing crypto community

bobo012

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I cant wait for someone to actually get a banking licence and have its own bank. Issue its own cards and avoid visa and mastercard at all.
There is enough money in crypto to be able to do that, and be independable

BlueStackz

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Quote from: XMLGold.eu on October 16, 2018, 08:45:45 AM

VISA and MasterCard tighten the requirements for the issuers of the bitcoin cards
Read more: https://www.xmlgold.eu/en/news/article/760/visa-and-mastercard-tighten-requirements-bitcoin-cards-issuers/

They can try as much as they want to stall the upcoming surge of the everyday usage of bitcoin but they can't run away too far. In the end no matter what happens there will be a time when bitcoin exchanges or wallets or banks or whatever you want to call it will have a system like mobile payment app or sorts and we will see a lot of new stuff for payment as well which would allow people to do all of this without the worry of visa or mastercard doing whatever they want to.

The only thing required is one crypto company and one bank agreeing on working globally on a mobile app that would allow people to do this, that's it. One agreement, one deal, one contract. As soon as that happens we are off to the races.

NeuroticFish

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I've just read something similar on another site, where they try to explain this with more words.
Just instead of enlighten me, they've confused me even more.

Quote

According to the Broker Complaint Registry, some details of the shortly upcoming classification by MasterCard had already become public in May of this year. The registry notes that binary options, CFDs, forex, cryptocurrency options, and ICOs will fall under a new category of “High-Risk Securities Merchants” starting on Oct. 12, 2018, and will be subject to additional monitoring.

Are cryptocurrency options the same as cryptocurrencies? I am not convinced, maybe somebody with better knowledge in financial terms (and maybe native English too) can tell.

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