Global payments giant Mastercard has informed that it will be terminating its cryptocurrency card partnership with the Binance cryptocurrency exchange next month.
Starting from September 22, Mastercard and Binance will conclude all co-branded crypto card programs in Argentina, Brazil, and Colombia, according to a spokesperson from Mastercard. The decision encompasses all of Binance's ongoing projects in these regions. It's important to note that this move has no bearing on any other crypto card initiatives not associated with Binance.
These co-branded prepaid crypto cards, a collaboration between Mastercard and Binance, permit users to conduct transactions in their local fiat currency, facilitated by the cryptocurrencies they possess on the exchange. The wind-down period until the termination date will provide cardholders with the Opportunity to convert their holdings in their Binance Wallet.
Though the reason for this development has not been explicitly disclosed by Mastercard, sources like Bloomberg have suggested that it may be linked to the intensified regulatory scrutiny surrounding the beleaguered cryptocurrency exchange. This partnership dissolution arrives approximately ly a year after Binance and Mastercard initially joined forces in August to launch a prepaid card designed for residents of Argentina. The partnership was further extended earlier in 2023 with the introduction of another prepaid crypto card for the Latin American market. The speculation around this termination centers on the evolving regulatory challenges Binance is confronting on a global scale.
As previously reported, Binance, along with its CEO Changpeng Zhao, has faced legal action from the SEC for alleged violations of local securities laws. Additionally, the CFTC has filed a lawsuit against Binance, asserting inadequate registration with the derivatives regulator.
The report also reveals that Mastercard isn't alone in distancing itself from Binance due to escalating worldwide regulatory concerns. Visa, according to Binance, halted the issuance of new co-branded cards associated with the exchange in Europe starting from July.
