Visa Introduces Crypto Withdrawals Via Debit Cards In 145 Nations

Here are some of the major developments from the world of crypto over the past few days.
some of the major developments from the world of crypto
some of the major developments from the world of crypto

Visa now allows users to turn cryptocurrency into cash on their debit cards, partnering with Transak, a Web3 infrastructure provider for a straightforward crypto-to-fiat solution. The collaboration, announced on Jan. 30, leverages the Visa Direct solution, allowing users to withdraw cryptocurrencies such as Bitcoin directly from wallets like MetaMask to a Visa debit card. This integration, available immediately, facilitates real-time card withdrawals, providing a faster and more connected experience for users and eliminating the reliance on centralized exchanges. Users can now seamlessly exchange crypto to fiat and make payments at over 130 million merchant locations globally where Visa is accepted.

This strategic collaboration marks a substantial leap in cryptocurrency accessibility, offering users in 145 countries the ability to directly convert at least 40 cryptocurrencies to fiat without the need for centralized exchanges. The partnership, extending to jurisdictions like Cyprus, Malta, Singapore, Turkey, Portugal, and the United Arab Emirates, is hailed as a significant step towards mainstream acceptance and utilization of cryptocurrencies.

Notably, the integration brings added convenience to users of decentralized platforms and wallets such as MetaMask, Ledger, and Trust Wallet, enabling them to effortlessly off-ramp from their digital assets directly to a Visa card. The move underscores Visa's proactive stance in exploring cryptocurrency use cases, following its earlier collaborations and support for stablecoins on specific Visa cards and blockchain networks.

Terraform Labs says bankruptcy will aid the appeal of SEC suit

Terraform Labs has strategically opted for Chapter 11 bankruptcy, with CEO Chris Amani asserting that this move strengthens their position in appealing the lawsuit brought by the U.S. Securities and Exchange Commission (SEC). The company, known for creating the now-defunct stablecoin TerraClassicUSD (USTC), filed for bankruptcy on Jan. 21, with Amani highlighting in a Jan. 30 filing to a Delaware Bankruptcy Court the critical role Chapter 11 plays in their appeal strategy. Typically requiring a "supersedeas bond" of 110% of the total judgment, bankruptcy protections may allow Terraform Labs to proceed with an appeal without upfront bond posting.

In the filing, Amani outlined their upcoming appeal argument, contending that the SEC lacks the authority to charge the firm or co-founder Do Kwon. He asserted that Terraform Labs' crypto assets shouldn't be categorized as securities, and the case falls beyond the SEC's jurisdiction. Amani also disclosed the company's treasury holdings, including approximately $28 million in Bitcoin, $7 million in various cryptocurrencies, and around $87 million in Luna tokens. The SEC had filed civil charges in February 2023, alleging a "multibillion-dollar crypto asset securities fraud" involving the tokens formerly known as UST and LUNA.

The situation is further complicated with co-founder Do Kwon facing extradition requests from both the U.S. and South Korea. Kwon's Terra Money ecosystem collapsed in May 2022, leading to his arrest in Montenegro in March 2023 after attempting to flee with falsified travel documents. If extradited to South Korea, he could potentially face a 40-year jail sentence, where the majority of his alleged crimes occurred, adding another layer of complexity to the ongoing legal proceedings.

Bitpanda introduces an institutional crypto platform with cold storage

Bitpanda, the Austrian fintech unicorn, is launching an institutional-grade cryptocurrency trading platform called Bitpanda Wealth in response to the increasing demand for institutional crypto services in Europe. This major cryptocurrency broker, founded in 2014, is introducing Bitpanda Wealth to cater to high-net-worth individuals, family offices, external asset managers, and corporate treasuries. The new institutional platform is built on the same trusted infrastructure used by several major European banks and offers a suite of services for crypto investment, management, and reporting, including leverage products, exchange-traded funds, commodities, and other assets.

Bitpanda Wealth utilizes Bitpanda's proprietary custody solution, Bitpanda Custody, incorporating cold storage to enhance the safety of investors' assets. The cold storage approach involves keeping clients' funds securely offline, significantly reducing the risk of security breaches and hacks. Registered with the UK's Financial Conduct Authority, Bitpanda Custody provides segregated wallets specifically designed for institutional investors, service providers, token issuers, and corporate treasuries. This strategic move by Bitpanda aims to address an underserved sector in Europe, responding to the expressed need for distinct services from private banks and affluent clients interested in crypto investments. The launch of Bitpanda Wealth follows the company's earlier institutions-focused platform, Bitpanda Pro, showcasing Bitpanda's continued commitment to meeting the evolving demands of the institutional crypto landscape.

Related Stories

No stories found.
Outlook Business & Money