Global payments processor Visa has scrapped its agreement with the bankrupt FTX crypto exchange. Reports quoting a Visa spokesperson said it terminated agreements with FTX.
“The situation with FTX is unfortunate and we are monitoring developments closely,” a Visa representative added.
Visa and FTX had announced “a long-term global partnership” in early October and the alliance planned that FTX will offer FTX-branded Visa debit cards to FTX customers internationally.
However, the FTX-Visa debit card made its debut only in the US and global rollout in over 40 other countries has been in the pipeline. The news of Visa’s inked partnership with FTX authorizing to release of crypto debit cards with a big focus on Asia, Latin America, and Europe had benefited FTX’s crypto token FTT immensely.
“In all our undertakings – in digital currency and beyond – our focus on security and trust remains paramount,” a Visa spokesperson asserted.
While signing the FTX deal, the crypto division head of Visa, Cuy Sheffield had said partnering with “leading crypto exchanges like FTX,” the payments provider will be getting “more flexibility and ease-of-use to the way people use their crypto.”
Under the FTX-Visa alliance, debit cards were to be directly linked to the card owner’s FTX account helping users to convert crypto balances to pay for purchases of goods and services.
The FTX fiasco is reportedly under investigation by the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and U.S. Department of Justice (DOJ), on allegations of misuse of clients’ funds.
