Visa recognizes the Forex, CFD and cryptocurrency market as highly risky

Visa announced that Forex, CFD, binary options, cryptocurrencies and ICO were classified by the company as high risk industries. Thus, Visa joined MasterCard, which issued a similar message in April this year. What consequences can we expect? First of all, difficulties in the process of topping up investment accounts run by non-regulated brokers or relatively liberal regulations.

More security, less availability

To increase the security of payment card users MasterCard decided to introduce the so-called chargeback (chargeback), which allows you to completely undo transactions even until 540 days after its implementation. Such a possibility comes into play when the consumer is not satisfied with the product, service, erroneous payment, and in the case of fraud. The changes came into effect on 15 October 2018.

Meanwhile, Visa sent information to its partners in which it indicates that from December transactions related to the Forex industry, binary options and cryptocurrencies will be considered highly risky. The targets are primarily brokers without a license, as well as those registered under jurisdictions with dubious reputation in terms of security. The concrete list has not been made public, but it can be assumed that it is all kinds of tax havens such as Belize, Bahamas, Marshall Islands or the British Virgin Islands.

If you use the services of a broker registered under the jurisdiction of the above-mentioned countries, you can expect that card transactions will soon cease to be available. At least until a reasonable solution to the problem.

The choice is getting heavier

When deciding on the use of brokers from outside the EU, traders, by supplying their account, most often choose transactions using a credit / debit card. It is the fastest and at the same time the cheapest form of funds transfer. In a situation where, with a small deposit of several hundred USD, an alternative foreign bank transfer may absorb a large percentage of capital, the card proved to be the solution to the problems.

Now that the recent ESMA regulations on the Forex market in Europe have made customers look for brokers outside the Union, the movement of card operators can help to stop them. Will it actually be like that?