Mastercard and Binance have jointly declared their decision to terminate the cryptocurrency card programs across Argentina, Brazil, Colombia, and Bahrain by September 22. This move comes amid a period of regulatory challenges for Binance, while Mastercard continues its strategic partnerships within the cryptocurrency space.
25 August 2023 – In a joint decision, global payment giant Mastercard and cryptocurrency exchange Binance have announced the discontinuation of their crypto card programs across four nations—Argentina, Brazil, Colombia, and Bahrain—effective September 22, according to a Mastercard spokesperson. This move marks an end to the offering that allowed Binance cardholders to transact in traditional currencies using their cryptocurrency assets held on the exchange.
While Mastercard maintains its involvement with various cryptocurrency partnerships, including one with Gemini, the termination of the Binance card programs will not impact any other ongoing crypto card initiatives, clarified the spokesperson.
This development occurs against the backdrop of Binance encountering legal and regulatory hurdles. The crypto exchange, led by CEO Changpeng Zhao, faced legal action by U.S. regulators in June over alleged deceptive operations. Binance has vowed a strong defense against these accusations.
Mastercard’s Head of Crypto and Blockchain, Raj Dhamodharan, had previously expressed the company’s interest in forging more alliances with cryptocurrency enterprises. Although he refrained from commenting specifically on Binance, Dhamodharan emphasized that all card programs undergo thorough due diligence and continuous monitoring.
However, neither Mastercard nor Binance has disclosed the precise reasons behind the conclusion of the Binance card program, nor has the entity responsible for the decision been revealed.
Binance has yet to respond to inquiries seeking comments. In a communication from the exchange’s customer support account, it was communicated that the Binance Card service would cease to be available to users in Latin America and the Middle East. – reference: Reuters