a MasterCard and the Visa sever their credit card partnerships with Binance, the largest cryptocurrency exchange in the industry. In July, Visa had already stopped issuing new co-branded cards with Binance in Europe, as reported by an exchange spokesperson.
Meanwhile, Mastercard plans to completely end its partnership with Binance in September, although the company chose not to detail the reasons for such a decision. Visa, for its part, has remained silent and has not commented on the matter.
The decision to end the partnership with Binance follows growing concerns about financial compliance in the industry and increased scrutiny from regulators the exchange has recently faced.
This dynamic puts a spotlight on how willing or unwilling traditional financial institutions are to embrace the digital asset space.
Binance Cryptocurrency Card
Mastercard and Binance launched a cryptocurrency card in Argentina in August 2022. The same card was launched in Brazil earlier this year.
Co-branded cards, the result of Binance’s partnership with Mastercard, allowed exchange users to spend their cryptocurrencies in daily transactions.
The service, which was popular in regions such as Latin America and the Middle East, will be discontinued on September 21, 2023. Although the closure affects less than 1% of the exchange’s users, it underlines the growing caution in the traditional sector. financial ecosystem.
Binance was quick to explain that the change will not have a global impact on its users’ accounts. In addition, the company highlighted the launch of the BinancePaya cryptocurrency payment solution, which offers an alternative for its users.
Visa ends partnership with Binance in Europe
Visa is also evaluating its relationship with Binance. The credit card giant has decided to stop issuing new co-branded cards in Europe from July, though full details of such a move have not yet been released.
Both Binance and Visa remained reserved when they asked for comment on the decision.
The response of the traditional financial sector to the rise of cryptocurrencies has been mixed. While Mastercard has recently taken a more cryptocurrency-friendly approach and launched products and services that promote cryptocurrency integration, the recent decision with Binance suggests a more cautious approach.
However, Mastercard reaffirmed its commitment to the digital asset space, indicating that this particular decision does not reflect a change in the company’s overall direction towards cryptocurrencies.
However, Binance’s situation with regulators is complicated. The company is on the radar of powerful regulators such as the US Securities and Exchange Commission. Recently, Binance was accused of committing financial irregularities, allegations that the company strongly denies.
In addition to oversight by the regulators, Binance is also experiencing pressure from other financial partners. The Checkout.com company has opted to discontinue its services to Binance, citing regulatory concerns and financial compliance issues.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
