Mastercard, a prominent global payment company, is said to be concluding its partnership with Binance in September in relation to cryptocurrency card services. As of September 22, Mastercard and Binance will conclude their four crypto card initiatives in Argentina, Brazil, Bahrain and Colombia.
While the specific reason for this change is not well known, the report suggests that it might be linked to heightened regulatory scrutiny faced by the troubled crypto exchange.
Notably, Mastercard has clarified that discontinuing this program will not impact any of its other ongoing crypto card projects. The company has stated that during the winding-down period, individuals holding these cards will be given the opportunity to convert any cryptocurrency assets held within their Binance wallets.
Mastercard’s Partnership with Binance
The conclusion of this collaboration occurs approximately twelve months after Binance and Mastercard initially joined forces in August 2022 to introduce a prepaid card tailored for Argentina’s population. Furthering their partnership in early 2023, the two companies extended their collaborative efforts by introducing an additional prepaid crypto card designed for use in Latin America.
Mastercard working with Binance enabled users to use their crypto holdings in over 90 Million shops that offer Mastercard Payments.
Binance’s Feud With the SEC
Binance, along with its CEO Changpeng “CZ” Zhao, has been legally challenged by the United States Securities and Exchange Commission (SEC) on allegations of breaching local securities regulations. Simultaneously, the U.S. Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Binance, asserting the exchange’s failure to properly register with the regulatory body responsible for overseeing derivatives trading.
Furthermore, Binance is said to have been the subject of an investigation by the U.S. Department of Justice (DOJ) due to allegations that the exchange allowed Russian users to utilize its platform in defiance of U.S. sanctions.
Mastercard’s distancing from Binance isn’t an isolated instance, as various firms have been taking similar actions in response to Binance’s global regulatory challenges. Visa, for example, reportedly halted the issuance of new co-branded cards in collaboration with Binance within Europe, as confirmed by statements attributed to Binance.
