End of the line: Mastercard & Binance to cease Crypto Card partnership
Mastercard has declared to end crypto card programme with Binance, a renowned crypto exchange Binance, thereby raising questions about the evolving landscape of cryptocurrency-related partnerships in the face of regulatory scrutiny and underscores the importance of compliance and due diligence in such collaborations.
Highlights
- The move signifies the termination of four crypto card programs in Argentina, Brazil, Colombia, and Bahrain
- The said announcement would be effective from 22 September
Mastercard and cryptocurrency exchange Binance have announced the discontinuation of their partnership involving four crypto card programs in Argentina, Brazil, Colombia, and Bahrain, effective 22 September. The move signifies the termination of a service that allowed users to make payments in traditional currencies using funds from their cryptocurrency holdings on the Binance exchange.
Legal and regulatory challenges for Binance
The decision to end this partnership comes amid a backdrop of legal and regulatory challenges faced by Binance. In June, U.S. regulators filed a lawsuit against the crypto exchange and its CEO, Changpeng Zhao, accusing them of operating a "web of deception." Binance has pledged to vigorously defend itself against these allegations. It's worth noting that this termination won't impact Mastercard's other cryptocurrency card programmes, which continue to operate as usual.
Mastercard's ongoing crypto endeavours
Mastercard has been actively pursuing partnerships with cryptocurrency firms, as evidenced by its collaboration with Gemini, among others. While the reasons behind ending the Binance programme remain undisclosed, Raj Dhamodharan, Mastercard's head of crypto and blockchain, emphasised in April that any card programme undergoes thorough due diligence and continuous monitoring.
Neither Mastercard nor Binance has provided specific details regarding why the partnership is ending or who initiated the decision. Binance has not yet responded to requests for comments regarding the termination. However, Binance Card users in Latin America and the Middle East were informed via the exchange's customer support channel on social media that the Binance Card service would no longer be available in these regions.
