Mastercard and Visa end partnership with Binance. Mastercard and Visa are stepping down from their partnership with Binance Holdings, a cryptocurrency platform under the scrutiny of regulators around the world. A spokesperson for Binance said that Visa stopped issuing new co-branded cards with its companies in Europe Friday (25/8/2023).
Mastercard will also end its partnership with Binance entirely in September 2023. Mastercard itself declined to provide reasons and Visa did not respond to requests for comment.
As is known, Binance is currently under the strict supervision of financial supervisors around the world. The pressure being received by crypto platforms is also increasing. Both the Binance company and its CEO Changpeng Zhao were sued by the United States Securities and Exchange Commission for violating securities regulations.
In addition, the Commodity Futures Trading Commission also sanctioned Binance for violating regulations to grant American users access to the exchange.
The move from Visa and Mastercard then became the latest blow to Binance’s attempts to break into mainstream markets. Binance is also increasingly isolated from the traditional financial system.
Binance Card itself was launched as part of an effort to encourage wider adoption of cryptocurrencies. This allows crypto exchange consumers to pay for day-to-day expenses with their crypto. The Binance visa card program was announced in September 2020.
Mastercard and Visa end partnership. According to Mastercard’s own email statement, its decision will affect all four of its co-branded card programs with Binance in Argentina, Brazil, Colombia, and Bahrain, starting September 22, 2023.
Mastercard also said that there is no impact on other crypto card programs. This closing period will allow cardholders to convert any holdings in their Binance wallet.