Mastercard Inc
Previously enthusiastic about collaborating with Binance, a renowned cryptocurrency platform, these payment behemoths have begun adopting a more cautious approach, Bloomberg reports.
Binance's operations have caught the attention of financial regulators from different corners of the world.
In the spotlight for a series of controversies over the last year, the platform and its CEO, Changpeng "CZ" Zhao, face legal battles with the
U.S. SEC over alleged securities rule breaches and with the Commodity Futures Trading Commission concerning access permissions for American users.
In light of these challenges, Visa decided to halt new co-branded card issuances with Binance in Europe starting in July, as revealed by a Binance representative.
On the other hand, Mastercard plans to sever its ties with Binance entirely in September. Mastercard's decision remains undisclosed, and attempts to reach Visa for further clarity have been unfruitful.
These developments signify potential setbacks for Binance's ambitions of gaining a firmer footing in the conventional financial domain.
Earlier this year, Binance faced restrictions in the U.S. and Australian banking systems.
In a subsequent move, the company ceased the Binance Connect service, a year-old initiative enabling businesses to accept cryptocurrencies via Mastercard and Visa. Their European banking ally will likely conclude its support services this coming September.
Binance Card aimed to amplify the acceptance and use of cryptocurrencies for regular expenses. The Binance Visa Card initiative saw its inception in September 2020.
Mastercard's forthcoming decision will impact its collaborative card ventures with Binance across Argentina, Brazil, Colombia, and Bahrain from September 22.
However, according to a disclosure by Binance on social platform X (previously Twitter), this move will only affect a minuscule percentage (less than 1%) of its user base in Latin America and the Middle East.
Moreover, the global Binance account holders will remain unaffected. Mastercard has assured that other crypto card programs remain untouched, allowing Binance cardholders sufficient time to manage their digital wallets accordingly.
Lately, Binance chose to pull the plug on its crypto-backed debit card for users in Latin America and the Middle East on the heels of Binance's recent move to shut down its crypto payments service, Binance Connect.
