Visa, Mastercard, and PayPal Announce Suspension of Operation in Russia

Visa, Mastercard, and PayPal have announced that they will be suspending operations in Russia as a response to the country's invasion of Ukraine.

Earlier this week, cryptocurrency exchange Coinbase said that it will not kick Russians off as the CEO said that many ordinary citizens have been heavily relying on crypto. Binance has likewise done the same as Coinbase, according to reports.

Visa, Mastercard Suspends Russian Operations

Visa and Mastercard are suspending their operations in Russia, according to statements released by both companies.

Per the report by the Associated Press, "Mastercard said cards issued by Russian banks will no longer be supported by its network and any Mastercard issued outside the country will not work at Russian stores or ATMs."

As for Visa, the company said that it is working with those concerned in Russia to make sure that all transactions in the country are stopped. This can be expected to happen within the next few days.

The latest development comes after both Visa and Mastercard have decided on "more limited moves to block financial institutions from the networks that serve as arteries for the payments system."

PayPal Halts Services in Russia

Prior to the announcements of Visa and Mastercard, PayPal likewise made the decision to suspend operations in the country as well.

According to a report by The Verge, the decision was shared on Twitter by none other than Ukraine's Vice Prime Minister Mykhailo Fedorov. His tweet can be seen below:

Fedorov's tweet includes a photo of the letter sent by PayPal CEO Dan Schulman. A portion of Schulman's letter reads, "Under the current circumstances, we are suspending PayPal services in Russia.

The CEO has assured the vice prime minister in his letter that the company is doing everything it can to help their employees in the region.

Coinbase Refuses to Ban All Russian Users

There is some silver lining of Russians who are affected by the decision of Visa, Mastercard, and PayPal. This silver lining comes in the form of cryptocurrency exchanges.

Earlier this week, it has been reported by Bloomberg that Coinbase CEO Brian Armstrong has refused to ban all Russian users from using the cryptocurrency exchange. Armstrong adds that Coinbase believes that everyone is deserving of access to basic financial services.

However, the CEO also revealed that Coinbase will comply should should it be required by the United States government.

In a series of tweets posted on his personal Twitter account, Armstrong stressed that many ordinary citizens in Russia are heavily relying on cryptocurrency now that the Russian Ruble has collapsed.

According to the Associated Press report, the ruble has reached a record low in the past few days. Because of this, worried Russians have been flocking ATMs in the country. Inflation has also reported to be rising as a result of the plunge of the ruble.