Mastercard is ending its partnership with cryptocurrency exchange Binance, according to an announcement made by Binance’s customer service account on Twitter. The Binance Card, which allows users to make purchases in fiat currency using crypto assets from their Binance accounts, will no longer be available in Latin America and the Middle East from September 22. The affected countries include Argentina, Brazil, Colombia, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. Mastercard stated that the decision to end the partnership provides cardholders with time to convert their holdings in their Binance wallets.
This development comes amidst a challenging period for Binance, as it faces legal and regulatory issues. In March, the Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and its CEO, Changpeng Zhao, accusing the exchange of intentionally directing American crypto traders away from its US subsidiary. In June, the Securities and Exchange Commission (SEC) sued Binance and Zhao, alleging violations of securities regulations and money laundering laws. The situation has escalated further, with the US Justice Department potentially pursuing criminal charges against Binance and Zhao. The mounting challenges have also resulted in several executives leaving the exchange.
Mastercard’s decision to end its partnership with Binance reflects the increasing scrutiny faced by the cryptocurrency industry and the need for companies to prioritize the safety and security of their networks and consumer experiences. This move will impact users who rely on Mastercard-linked Binance Cards for their daily expenses, requiring them to find alternative solutions for making purchases with crypto assets. It remains to be seen how this development will affect both Binance and Mastercard in the evolving landscape of the crypto market.