Binance is encountering serious regulatory opposition as Visa and Mastercard choose to withdraw from their card programs with the exchange.
In Brief
The financial giants Visa and Mastercard are retreating from their previous card partnerships with the cryptocurrency exchange Binance.
Visa halted the issuance of new co-branded cards with Binance back in July, while Mastercard is set to end its partnership completely come September.
The collaboration between Visa and Binance was first announced in September 2020, with Mastercard joining the partnership in August 2022.
Payment giants Visa and Mastercard They are stepping away from partnerships with a cryptocurrency exchange. Binance Visa stopped issuing new co-branded cards for Binance in Europe as of July, and Mastercard is preparing to fully end its collaboration in September.
Visa kicked off its Binance card initiative in September 2020, while Mastercard followed suit later in August 2022. announced the partnership in August 2022.
Mastercard aimed to support the broader adoption of cryptocurrencies through its initiative, allowing users to make everyday transactions using various crypto assets. Previously, currencies like Ethereum, Bitcoin, Dogecoin, and Binance Coin could be spent at over 90 million locations accepting Mastercard.
Mastercard's recent decision could have significant repercussions for its co-branded card programs in various countries. Not too long ago, Binance also stopped its Binance Connect service, which had been set up to ease cryptocurrency transactions via Visa and Mastercard.
Payment giants reportedly have delayed plans Amid growing regulatory uncertainties and notable collapses in the crypto sector starting February, the big payment companies are becoming more cautious in working with crypto businesses.
The actions taken by these two major payment companies represent a new challenge for Binance as it strives to establish a stronger foothold in the traditional market, which could deepen the divide between the exchange and conventional financial structures.
As one of the leading cryptocurrency exchanges, Binance is currently under intense scrutiny from global financial regulators, particularly after experiencing a string of challenges and controversies throughout the last year.
In June, both Binance and its CEO Changpeng “CZ” Zhao were scrutinized heavily by the US Securities and Exchange Commission (SEC) for alleged breaches of securities regulations, along with the Commodity Futures Trading Commission (CFTC) due to claims of onboarding unauthorized US users. Binance has pushed back against these allegations. legal actions Mastercard is embracing the Web3 era as it launches a new service for NFT payments. filed a court order against the SEC.
Read more:
Disclaimer
In line with the Trust Project guidelines Valeria serves as a reporter for Metaverse Post. She specializes in coverage of fundraising efforts, AI advancements, developments in the metaverse, digital fashion trends, NFTs, and all things related to Web3.
