MasterCard no longer collaborates with the Binance cryptocurrency card.
To distance themselves from the cryptocurrency exchange that is being scrutinized by regulators all over the world, Mastercard and Visa have withdrawn from their card-related agreement with Binance.
According to a spokesman for Binance, "Visa stopped issuing new co-branded cards with Binance in Europe as of July."
MasterCard, however, is canceling its full affiliation with Binance in September but will not disclose its rationale.
Financial regulators from all around the world have been closely monitoring Binance as a result of a crackdown on the sector following a string of scandals last year.
The Commodity Futures Trading Commission sued Binance for circumventing the restrictions by allowing US users to access the platform, while the US Securities and Exchange Commission sued the business and its CEO, Zhang Pengzhao, for violating securities laws. The business has refuted these assertions.
The actions taken by MasterCard and Visa are the latest setback to Binance's efforts to mainstream cryptocurrencies at a time when the company is becoming more and more shut off from the established banking system.
Binance lost access to the US banking system in February, while some Australian bank transfers were no longer accepted by Binance in May.
The exchange recently made the decision to discontinue Binance Connect, a program that had been available for a year and allowed businesses to take cryptocurrency through MasterCard and Visa. In September, the exchange's banking partner in Europe is also expected to stop providing assistance.
The Binance Card, which was introduced as part of an initiative to promote the use of cryptocurrencies, enables users of the site to pay for standard daily expenses with funds stored in the form of cryptocurrencies.
All four co-branded card programs with Binance in Argentina, Brazil, Colombia, and Bahrain are impacted by MasterCard's decision, which became effective on September 22.
Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates would not be a part of our cooperation with MasterCard, according to Binance; MasterCard did not confirm the Middle Eastern nations in question.
MasterCard stated that "there are four pilot programs in the market," but did not indicate whether one of these programs is limited to Bahrain or is available to the entire Gulf Cooperation Council.
Less than 1% of users in Latin America and the Middle East were reportedly impacted by the move, according to the cryptocurrency exchange, which also noted that global Binance accounts were unaffected.
The decision won't affect any other crypto card programs, and cardholders can transfer any holdings in their Binance wallets during the liquidation time, according to Mastercard.
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