Binance Faces Regulatory Backlash as Visa and Mastercard Drop Card Partnerships
In Brief
Payment giants Visa and Mastercard have taken a step back from their card partnerships with the cryptocurrency exchange Binance.
Visa ceased issuing new co-branded cards with Binance in Europe in July, and Mastercard will terminate its card partnership with Binance entirely in September.
Visa first announced its Binance Visa card program in September 2020 while Mastercard announced the partnership in August 2022.
Payment giants Visa and Mastercard have taken a step back from their card partnerships with a cryptocurrency exchange Binance. While Visa ceased issuing new co-branded cards with Binance in Europe in July, Mastercard will terminate its card partnership with Binance entirely in September.
Visa first announced its Binance Visa card program in September 2020 while Mastercard announced the partnership in August 2022.
Mastercard launched the initiative to enhance widespread crypto adoption, enabling users to utilize crypto assets for their daily expenditures. Ethereum, Bitcoin, Dogecoin, and Binance Coin could previously be used for payments at over 90 million Mastercard-accepting stores.
The current move by Mastercard holds specific implications for its co-branded card programs across multiple nations. In a significant development, Binance recently halted its one-year-old offering Binance Connect, which facilitated cryptocurrency acceptance through Visa and Mastercard.
Payment giants reportedly have delayed plans to collaborate with cryptocurrency firms due to regulatory uncertainty and high-profile collapses in the industry in February of this year.
The present actions undertaken by the two prominent payment corporations pose a fresh trial for Binance’s pursuit of a more prominent stance in the mainstream market. This could potentially amplify the gap between the platform and the conventional financial system.
As a crypto exchange, Binance is grappling with escalated pressure due to ongoing scrutiny from worldwide financial regulators, compounded by a series of issues and controversies throughout the past year.
In June, the company and its CEO Changpeng “CZ” Zhao were subject to legal actions by the US Securities and Exchange Commission (SEC) for alleged securities rule violations and by the Commodity Futures Trading Commission (CFTC) for allowing unauthorized American users on the platform. Binance, however, has contested these allegations and filed a court order against the SEC.
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About The Author
Valeria is a reporter for Metaverse Post. She focuses on fundraises, AI, metaverse, digital fashion, NFTs, and everything web3-related. Valeria has a Master’s degree in Public Communications and is getting her second Major in International Business Management. She dedicates her free time to photography and fashion styling. At the age of 13, Valeria created her first fashion-focused blog, which developed her passion for journalism and style. She is based in northern Italy and often works remotely from different European cities. You can contact her at [email protected]
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Valeria is a reporter for Metaverse Post. She focuses on fundraises, AI, metaverse, digital fashion, NFTs, and everything web3-related. Valeria has a Master’s degree in Public Communications and is getting her second Major in International Business Management. She dedicates her free time to photography and fashion styling. At the age of 13, Valeria created her first fashion-focused blog, which developed her passion for journalism and style. She is based in northern Italy and often works remotely from different European cities. You can contact her at [email protected]
