Mastercard and Visa Cut Ties with Binance Over Crypto Card Partnerships

Mastercard and Visa Cut Ties with Binance Over Crypto Card Partnerships

Leading payment giant Mastercard announced its decision to terminate its co-branded card programs with the cryptocurrency exchange Binance by the end of September. This move will affect Binance cardholders in Argentina, Brazil, Colombia, and Bahrain.

Seth Eisen, the Senior Vice President of Communications at Mastercard, emphasized that the discontinuation on September 22 is intended to offer a transition period for customers to manage any assets in their Binance wallets.

This decision by Mastercard comes a year after its collaboration with Binance to introduce a Bitcoin rewards card in Argentina.

Visa’s Previous Action

Visa, another dominant player in the payment industry, had previously ceased its partnership with Binance in July. They embarked on a journey together in 2021 to produce a co-branded debit card. However, Visa remained silent regarding the reasons for their departure from this venture.

Binance’s Response

In light of these developments, Binance announced its plan to discontinue its crypto card in regions like Latin America and the Middle East. According to a spokesperson from Binance, this decision impacts a minimal segment of their user base, with less than 1% being affected. Affected users are given until September 21, 2023, after which the card will be inoperative.

Mastercard’s Continued Interest in Crypto

Although Mastercard’s partnership with Binance has ended, the company’s commitment to the crypto realm remains robust. The company recently unveiled its collaboration with several crypto-focused enterprises, including Ripple, ConsenSys, and Fireblocks, to explore the potential of Central Bank Digital Currency (CBDC). Varun Paul, the CBDC director at Fireblocks, voiced his enthusiasm for this initiative, highlighting their shared objective to bolster digital asset technologies’ growth and foster global CBDC advancements.

Binance’s Regulatory Hurdles

Binance currently faces multiple regulatory challenges. The exchange has come under scrutiny with several legal cases and heightened oversight from international regulators. While the SEC has accused Binance of potential securities law violations, allegations in Brazil and France also haunt the platform, including charges of operating a pyramid scheme and being involved in “aggravated money laundering.”