Mastercard, Binance To Discontinue Cryptocurrency Card Services In Select Regions

Global financial services giant Mastercard (MA) and prominent cryptocurrency exchange Binance are set to terminate their collaborative cryptocurrency card programs in several countries.

Effective from September 22nd, these changes will impact operations in Argentina, Brazil, Colombia, and Bahrain.

The crypto cards offered by Binance have allowed users to conduct transactions in traditional fiat currencies using funds derived from their cryptocurrency holdings on the Binance exchange. However, this move won’t affect Mastercard’s other ongoing cryptocurrency card initiatives.

It’s notable that Mastercard’s official website also highlights partnerships with other cryptocurrency exchanges, such as Gemini, underscoring the broader engagement of the financial giant in the crypto sector.

The backdrop to this development includes Binance’s ongoing legal and regulatory challenges. The exchange and its CEO, Changpeng Zhao, were sued by U.S. regulators in June on allegations of operating deceitfully. Binance has robustly pledged to vigorously defend itself against these accusations.

The decision to terminate the partnership between Mastercard and Binance aligns with Mastercard’s broader strategy. Earlier in April, Raj Dhamodharan, Mastercard’s head of crypto and blockchain, revealed the company’s interest in establishing more alliances with cryptocurrency enterprises. Dhamodharan emphasized the rigorous due diligence and continuous monitoring that all card programs go through.

Details regarding the specific reasons for discontinuing the Binance card program remain undisclosed by both Mastercard and Binance representatives. The development has sparked discussions about its implications for users and the cryptocurrency market at large.

Binance’s customer support on the social media platform X (formerly Twitter) announced on Thursday that the Binance Card service will no longer be available to users in Latin America and the Middle East.

The termination of the Mastercard-Binance partnership in these regions is a significant event, prompting conversations about its potential ramifications for the cryptocurrency ecosystem.

For comments and feedback contact: editorial@rttnews.com

Business News