MasterCard, one of the leading credit card companies, has terminated ts credit card partnerships with Binance, joining its main competitor Visa.
This development signifies a growing wariness among traditional financial institutions in collaborating with Binance. The company is undergoing significant regulatory scrutiny and facing broader apprehensions regarding financial compliance within the cryptocurrency industry.
MasterCard’s decision entails the discontinuation of Binance-branded cards in Latin America and the Middle East. These cards allowed customers to utilize their cryptocurrency for making purchases. Binance communicated this update via Twitter.
Hello there,
The Binance Card will no longer be available to users in Latin America and the Middle East. The product, like most debit cards, has been utilized by Binance’s users to pay for basic daily expenses but in this case, the cards are funded with crypto assets. Only a tiny…— Binance Customer Support (@BinanceHelpDesk) August 23, 2023
“The product, like most debit cards, has been utilized by Binance’s users to pay for basic daily expenses but in this case, the cards are funded with crypto assets,” Binance Customer Support said on Twitter.
“Only a tiny portion of our users (less than 1% of users in the markets mentioned) are impacted by this. Users of this product will have until September 21, 2023, when the card will no longer be available for use.
Binance accounts around the world are not affected. Where available, users can also shop with crypto and send crypto using Binance Pay, a contactless, borderless and secure cryptocurrency payment technology designed by Binance,” the company added.
Visa, on the other hand, has also taken steps to disassociate itself from Binance.
The company terminated a comparable card partnership with Binance, discontinuing the issuance of new co-branded cards with the company in Europe since July 2023.
Binance is currently facing severe backlash from regulatory bodies such as the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The SEC lodged 13 charges against Binance and its CEO, Changpeng Zhao, alleging that the company mingled billions of dollars in customer funds with its own, a practice akin to the accusations leveled against the now insolvent cryptocurrency exchange FTX.
Binance, which denies the allegations, recently filed a protective order against the SEC saying the regulator’s requests for information were ‘over broad’ and ‘unduly burdensome.’
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