The Binance-branded cards, which like most debit cards, allow customers in in Latin America and the Middle East to use their crypto assets to buy goods or pay for their basic daily expenses will no longer be offered by Mastercard following the specified date
Mastercard and Binance are set to end their crypto card partnership. (Credit: pattymalajak from Pixabay)
Mastercard and crypto exchange Binance are set to scrap their crypto card partnership with their ongoing four crypto card initiatives in Argentina, Brazil, Colombia, and Bahrain scheduled to cease operations by 22 September 2023.
The development means that Mastercard will stop offering Binance-branded cards in the regions. Like most debit cards, these allow customers to use their crypto assets to buy goods or pay for their basic daily expenses.
On social media platform X, Binance posted: “Only a tiny portion of our users (less than 1% of users in the markets mentioned) are impacted by this. Users of this product will have until September 21, 2023, when the card will no longer be available for use.”
The company said that globally, Binance accounts remain unaffected.
In regions where applicable, users can use Binance Pay, a contactless and secure cryptocurrency payment technology developed by Binance, for shopping and sending crypto across borders, said the crypto exchange.
According to Reuters, Mastercard’s website lists out collaborations with cryptocurrency exchanges like Gemini. A spokesperson told the publication that the decision on Binance will not impact any of Mastercard’s other crypto card programmes.
Meanwhile, Visa has taken steps to disassociate from Binance. A spokesperson for the company informed Bloomberg that Visa concluded a comparable card partnership with Binance, discontinuing the issuance of new co-branded cards with the company in Europe since July.
Binance has come under regulatory scrutiny from entities such as the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission.
The SEC has lodged 13 charges against Binance and its CEO Changpeng Zhao, alleging that the company mixed billions of dollars in customer funds with its own capital. These are similar to accusations made against the now defunct crypto exchange FTX.
Binance has consistently refuted the claims though.
Earlier this year, Binance.US terminated its previously announced $1.3bn acquisition of certain assets from Voyager Digital, attributing it to an uncertain regulatory landscape.