After the example set by Facebook, VISA and MasterCard, are placing a ban on what Crypto from categorizing Crypto trades as insecure.
Unlinking VISA and MasterCard from Crypto
The insecure categorization basically suggests that retailers and agents, which can be somehow linked to Crypto, may find their merchant account suspended or terminated.
This is going to make it extremely difficult, if not impossible, for Crypto-exchanges and Crypto organizations to transact from and also to VISA and MasterCard cards.
What’s this occurring?
Though Crypto will over time create banks and card issuers completely obsolete, this isn’t the reason the card issuers have been implementing the ban. Most probably it is the shortage of KYC and AML compliance, which now is a valid matter. Every participant in today’s financial model has to be KYC and AML compliant.
Card issuers consistently depended on banks to execute the required KYC and AML compliance checks. That is why, generally, you have your debit and credit cards through banks. Banks check your id and always track your trades, to test for suspicious activity for AML compliance.
That is why when you pay using a VISA or MasterCard, you do not need to experience KYC or AML checks each moment. The Merchant can expect the lender to inspect the KYC and AML compliance of your own funds.
In Crypto there are no gatekeepers, which assess the identity of individuals or the origin of capital. That is why Crypto is oblivious of all the KYC and AML controlled financial system.
By it is layout, Crypto is incompatible with all the only KYC & AML controlled financial system.