Mastercard Ends Crypto Card Partnership with Binance in Four Countries
Global payments company, Mastercard, has announced the termination of its crypto card payment partnership with Binance in four countries. By September 22, all crypto card programs in Argentina, Brazil, Colombia, and Bahrain will cease to operate.
While Binance has yet to issue an official statement regarding the termination, its customer support account on Twitter, now known as X, confirmed that the Binance Card will no longer be available to users in Latin America and the Middle East.
The reason behind Mastercard’s sudden decision has not been disclosed. However, it is believed to be connected to the ongoing regulatory challenges that Binance is facing in the United States.
In June, the leading cryptocurrency exchange was sued by the US Securities and Exchange Commission (SEC) for allegedly violating US securities laws. The SEC levied approximately 13 charges against Binance and its CEO, Changpeng ‘CZ’ Zhao, accusing the exchange of operating illegally in the US, mishandling customer deposits, misleading regulators and investors, and listing unregistered securities.
Tokens like Cardano (ADA), Polygon (MATIC), and Solana (SOL) were listed as unregistered securities in the SEC’s complaint. Initially, CZ claimed to be unaware of the official complaint, but Binance later responded, expressing disappointment in the SEC and vowing to contest the allegations in court.
According to Binance, the SEC chose to pursue enforcement and litigation instead of adopting a thoughtful, nuanced approach required by the complex and dynamic nature of the technology.
The enforcement action had a negative impact on the broader cryptocurrency ecosystem, with token prices dropping significantly. The effects of the SEC lawsuit are still being felt, as evidenced by Mastercard’s decision to end its crypto card partnership with Binance.
In conclusion, Mastercard’s move to dissolve its partnership with Binance in Argentina, Brazil, Colombia, and Bahrain seems to be a response to the US regulatory challenges faced by the exchange. As the crypto industry continues to grapple with increasing scrutiny and regulation, the fallout from such legal actions is likely to have far-reaching consequences.
