Mastercard and Binance, a prominent crypto exchange, have terminated their four crypto card initiatives in Argentina, Brazil, Colombia, and Bahrain, effective September 22nd. A Mastercard representative confirmed this announcement. These Binance cards enabled users to conduct transactions in conventional currencies, which were backed by their cryptocurrency assets held on the Binance platform. Visa stopped issuing new co-branded cards with Binance in Europe as of July.
While Mastercard has collaborations with other crypto exchanges like Gemini, this decision will not influence any of Mastercard’s remaining crypto card schemes. Binance is currently navigating through a series of legal and regulatory hurdles. In June, U.S. regulatory bodies initiated a lawsuit against Binance and its CEO, Changpeng Zhao, accusing them of orchestrating a “web of deception.” In response, Binance has expressed its intent to robustly defend its position.
Raj Dhamodharan, who oversees crypto and blockchain at Mastercard, had previously shared with Reuters in April about the company’s aspirations to forge more alliances with crypto entities. Although he refrained from commenting on Binance directly, he emphasized that every card program undergoes thorough due diligence and is under constant scrutiny.The reasons behind the termination of the Binance program or the decision-makers involved remain undisclosed, as a Mastercard spokesperson chose not to comment on the matter. Binance has yet to provide a statement in response to an email inquiry.
However, an update from the exchange’s customer support on X, a platform previously recognized as Twitter, revealed that the Binance Card would no longer cater to users in Latin America and the Middle East. The crypto exchange has recently been under the spotlight in various countries, including the UK, where its operations were restricted.
The UK’s Financial Conduct Authority (FCA) has warned against Binance, emphasizing that the platform isn’t authorized to conduct regulated activities in the country. Binance has also faced challenges in Japan, where the Financial Services Agency (FSA) accused the exchange of operating without proper authorization. These incidents highlight the growing scrutiny and regulatory challenges faced by Binance across different jurisdictions.
In the United States, Binance has faced lawsuits from the SEC and the CFTC for alleged violations of securities laws. Most recently, Binance has also been criticized for its cooperation with the Russian payment processor Advcash.
