Breaking: Mastercard and Binance to Halt Crypto Card Programs in Key Markets

By Kevin • August 24, 2023 5:14 pm • Comments

Mastercard and Binance, a major cryptocurrency exchange, are discontinuing their cryptocurrency card programs in Argentina, Brazil, Colombia, and Bahrain effective September 22, as reported by Reuters.

The move is a result of the Binance cards enabling users to make payments in traditional currencies using funds from their cryptocurrency holdings on the platform.

Mastercard’s spokesperson confirmed that the decision to terminate these programs will not impact their other ongoing cryptocurrency card collaborations. The company has previously formed partnerships with various crypto exchanges, including Gemini.

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Binance is currently facing legal and regulatory challenges.

In June, U.S. regulators filed a lawsuit against the exchange and its CEO, Changpeng Zhao, alleging deceptive operations. Binance has strongly committed to defending itself against these accusations.

Reuters reports:

Binance is facing legal and regulatory challenges. U.S. regulators sued the crypto exchange and its CEO Changpeng Zhao in June for allegedly operating a “web of deception.” Binance has said it would defend itself “vigorously.”

Mastercard’s head of crypto and blockchain, Raj Dhamodharan, told Reuters in April that the company was seeking more partnerships with crypto firms.

He declined to comment on Binance specifically, but said any card programme “goes through full due diligence” and is continuously monitored.

Raj Dhamodharan, the Head of Crypto and Blockchain at Mastercard, previously expressed the company’s interest in establishing more partnerships with cryptocurrency firms.

He noted that every card program undergoes thorough due diligence and continuous monitoring. While he did not directly address the termination of the Binance program, he emphasized the rigorous process involved.

Despite this development, the spokesperson from Mastercard declined to elaborate on the reasons behind the decision or the parties involved in making it. Conversely, Binance did not promptly respond to requests for comments.

According to information from Binance’s customer support account, the Binance Card will no longer be accessible to users in Latin America and the Middle East.

The card had allowed users to convert cryptocurrency into fiat currency, providing opportunities to earn up to 8% cash back in crypto depending on the transaction.

This initiative aimed to encourage wider adoption of cryptocurrencies and offered an alternative payment method, particularly in regions like Argentina where high inflation had driven interest in alternative financial solutions.

TheBlock.co reports:

Mastercard and crypto exchange giant Binance are ending crypto card programs in Argentina, Brazil, Colombia and Bahrain, Reuters reported.

The cessation, set for Sept. 22, will not affect Mastercard’s other crypto card programs, the news agency added.

Binance and Mastercard forged the partnership allowing users to convert cryptocurrency into fiat currency with the ability to earn up to 8% cash back in crypto, depending on the purchase.

Merchants still received fiat currency, while customers used their crypto as a means of payment which was intended to bolster broader crypto adoption.

In summary, Mastercard and Binance are discontinuing their cryptocurrency card programs in several countries. While Mastercard remains committed to other crypto card collaborations, this decision is likely influenced by Binance’s ongoing legal challenges and regulatory concerns.

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