Mastercard, Binance to end cryptocard partnership
The Binance cards allow users to make payments in traditional currencies, funded by their cryptocurrency holdings on the exchange. Visa ended a similar card tie-up with Binance in Europe in July.
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Mastercard and crypto exchange Binance will end their four crypto card programmes in Argentina, Brazil, Colombia and Bahrain from September 22, this year. The Binance cards allow users to make payments in traditional currencies, funded by their cryptocurrency holdings on the exchange.
Visa ended a similar card tie-up with Binance in Europe in July. Mastercard had warmed to crypto in recent years. In October 2021, the firm began allowing any bank or merchant the ability to offer crypto services. Last year, the company launched a product allowing banks to assess the risk of crime posed by crypto merchants, and started letting banks offer crypto trading.
The development is a big blow to the crypto giant as it also faces intense backlash from the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission.
The SEC brought 13 charges against Binance and its CEO Changpeng Zhao accusing the company of commingling billions of dollars in customer money with Binance’s own funds, similar to allegations made against the now bankrupt crypto exchange FTX.
However, Binance denied the allegations. The firm recently filed a protective order against the SEC, saying the regulator’s requests for information were “over broad” and “unduly burdensome.”
Mastercard and crypto exchange Binance will end their four crypto card programmes in Argentina, Brazil, Colombia and Bahrain from September 22, this year. The Binance cards allow users to make payments in traditional currencies, funded by their cryptocurrency holdings on the exchange.
Visa ended a similar card tie-up with Binance in Europe in July. Mastercard had warmed to crypto in recent years. In October 2021, the firm began allowing any bank or merchant the ability to offer crypto services. Last year, the company launched a product allowing banks to assess the risk of crime posed by crypto merchants, and started letting banks offer crypto trading.
The development is a big blow to the crypto giant as it also faces intense backlash from the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission.
The SEC brought 13 charges against Binance and its CEO Changpeng Zhao accusing the company of commingling billions of dollars in customer money with Binance’s own funds, similar to allegations made against the now bankrupt crypto exchange FTX.
However, Binance denied the allegations. The firm recently filed a protective order against the SEC, saying the regulator’s requests for information were “over broad” and “unduly burdensome.”
