Mastercard and Visa cut ties with Binance
Major payment companies Mastercard and Visa have decided to terminate their crypto card partnerships with Binance distancing themselves from the exchange amid increasing regulatory scrutiny and challenges it faces in various jurisdictions.
Starting from September 22, Mastercard will discontinue its crypto card offerings in Argentina, Brazil, Colombia, and Bahrain. Visa had already stopped issuing new co-branded cards with Binance in Europe as of July. Both giants will offer cardholders a wind-down period to convert any holdings in their Binance wallet.
While these terminations impact Binance’s partnerships with Mastercard and Visa, the exchange has been facing a range of regulatory challenges and legal actions worldwide. The Securities and Exchange Commission (SEC) and other US regulators are chasing Binance for violating securities laws, Brazil accused one of its executives of running in a pyramid scheme, and France is investigating the exchange for alleged money laundering.
In contrast, Mastercard continues to engage with the cryptocurrency space through other avenues. The company recently established a working group with various crypto-native firms to explore Central Bank Digital Currency (CBDC) initiatives, reflecting its continued interest and engagement in the evolving cryptocurrency landscape.
Binance debit card works just the same as any other bank card, except it isn’t linked to a mobile banking app, but a crypto wallet. The offering provides clients with a simple way to acquire cryptocurrencies without having to pay fees or navigate the sometimes complicated onboarding processes at exchanges.
Binance card holders are earning up to 8% in crypto cashback on eligible purchases and enjoy zero fees on ATM withdrawals. The card also offers other benefits such as access to exclusive offers with select merchants and comes with no annual fee or foreign transaction fees.
Binance announced yesterday that it was terminating its crypto card in Latin America and the Middle East. Despite discontinuing the debit card services, Binance explained that users will still be able to process refunds and disputes until December 20, 2023. The company also clarified that this change won’t impact Binance accounts globally. Users will still be able to shop with crypto and make use of Binance Pay, a contactless and secure cryptocurrency payment technology developed by the crypto giant.
Specially issued crypto cards has become the norm that is quite popular since they allow users to cash out their digital assets and spend them at thousands of credit card-accepting merchants worldwide. These cards resolve one of the greatest drawbacks of cryptocurrencies, which is the inability to use them in everyday life with the same ease as traditional currencies.