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Mastercard fined $640M for cross-border-payment violation; cryptocurrency proponents pushback




Mastercard fined $640M for cross-border payment violation; cryptocurrency proponents pushback
Source: Pixabay

Mastercard has been slapped with a €570 million [$650 million] fine by the European Commission for violating a European Union [EU] cross-border payments law. The violation stems from the financial company charging artificial fees on their merchants, as indicated by an EC press release dated 22 January 2019.

This landmark antitrust ruling was announced after a series of investigations by the EU, which concluded that Mastercard charged varied interchange fees depending on the location of the retailer, a breach of the EU’s Single Market rules.

Margrethe Vestager, the commissioner overseeing the competition policy in the EU said that Mastercard violated the EU’s Single Market rules by increasing the cost of card payments through the varied interchange fees charged.

In the EC statement, she said:

“European consumers use payment cards every day, when they buy food or clothes or make purchases online. By preventing merchants from shopping around for better conditions offered by banks in other Member States, Mastercard’s rules artificially raised the costs of card payments, harming consumers and retailers in the EU.”

The investigation into this fee-manipulation began in 2013 when the EC opened a “formal antitrust investigation” against the company to find any violation of cross-border-payments’ laws. It should be noted that Mastercard complied with these investigations, which resulted in a 10 percent decrease in the fine to be paid.

Findings of the investigation revealed that Mastercard’s cross-border acquiring rules resulted in retailers paying more for bank services in order to receive card payments, a cost that would be shared with eventual customers.

Cross-border payment facilitation is a cornerstone of virtual currencies and cryptocurrency proponents are advocating the same in light of the Mastercard fine.

Anthony Pompliano, the founder and partner at Morgan Creek Digital stated, tweeted:

“The legacy financial players can only win if you lose — what a horrendous business model. Long Bitcoin, Short the Bankers!”

Calvin Ayre, the founder of Ayre group and Bitcoin SV [BSV] proponent tweeted:

“use Bitcoin BSV to handle payments online and skip the credit card company monopolies.”

Despite the controversy, Mastercard’s stocks did not take a massive tumble as they warned stakeholders, while the investigation was underway, regarding the EC fine in 2017 and also included the same in a 2018 quarter report.

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Bitcoin [BTC]: King coin’s Golden Cross confirmed; Greenspan hints at bullish market




Bitcoin [BTC]: King coin’s Golden Cross confirmed; Greenspan hints at bullish market
Source: Pixabay

Bitcoin’s much-awaited Golden Cross, which many analysts claimed will lead to a resurgence of a bullish market, has been confirmed. The intersection of the 200-day moving average and 50-day moving average, which indicates the Golden Cross, was achieved over the past few hours.

Earlier today, the top cryptocurrency saw a massive rise after days of sideways movement. Bitcoin’s ascendance saw it break the $5,350 resistance level, which eToro’s Mati Greenspan had previously suggested will consolidate “buying pressure.”

Source: TradingView

Additionally, a major psychological level of $5,500 was also surpassed less than three weeks after Bitcoin broke the $5,000 mark.

The Golden Cross theory holds credibility among analysts in the cryptocurrency realm as it infers that the coin’s average price is above its 200-day equivalent. For the first time in over a year, the cryptocurrency market has seen its 50-day MA move above the 200-day MA, which according to many is a sign of a bullish market.

On the opposing side of the Golden Cross indicator is the Death Cross, where two indicators cross over into a bearish market i.e. the 200-day MA moves above the 50-day MA. The Death Cross manifested in April 2018, after the prices went into a free fall following the December 2017 high.

In April 2018, BTC was priced at just over $7,000, following which it lost more than 50 percent of its price by the end of the year. The price of the king coin has recovered exceedingly well in 2019 however, winning back almost 50 percent of its lost value.

Many analysts, including Greenspan, agree that the crossing of the two moving averages is a clear testament to the return of the bull market. Although he didn’t quite use those words, Greenspan tweeted,

“Ladies & Gents… The Golden Cross!
Bitcoin’s 50-day moving average (gold) crossing above her 200-day moving average (blue). 📈
This is yet another sign that we’re back in a🐂market. 🚀🌛”

However, in an exclusive interview with AMBCrypto last week, Greenspan had stated that the Golden Cross theory is a “lagging indicator,” as the Death Cross was last seen in April 2018, months after the market took a bearish turn.

In his view, the 200-day moving average is the key indicator. On April 2, Bitcoin broke this mark for the first time since March 2018, by recording a massive 17 percent daily gain and rising above $5,000.

Based on historic price changes with reference to the Golden Cross, the last time the 50-day MA soared above the 200-day MA, price of Bitcoin rose by over 8000 percent from $246 in October 2015 to almost $20,000 in December 2017. Given past market movements, the current market scenario, and the optimism in the air, the Golden Cross may just have initiated the Bitcoin bull market.

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