Mastercard and Binance will stop cooperating on cryptocurrency cards

Cryptocurrency exchange Binance and Mastercard will stop cooperation on cryptocurrency cards from September 22nd

Representatives of the exchange said that the decision will affect a small proportion of users and will not affect the global activity of the cryptocurrency platform

Mastercard and cryptocurrency exchange Binance will stop cooperating on four joint cryptocurrency card programs in Argentina, Brazil, Colombia, and Bahrain from September 22, 2023, Reuters reported, citing an email from representatives of the payment system.

Binance representatives in social network X (formerly Twitter, blocked in Russia) specified that the decision will affect less than 1% of cryptocurrency exchange users in Latin America and the Middle East and will not affect the work of the site in other countries of the world.

Binance cryptocurrencies allow exchange customers to make payments in fiat currencies funded by their cryptocurrency assets on the platform.

Mastercard's head of cryptocurrencies and blockchain Raj Dhamodharan told the publication in April that the company is looking to expand partnerships with cryptocurrency exchanges. He wouldn't comment on the Binance situation but said any card program "goes through full due diligence" and is constantly monitored.

Binance has been facing regulatory challenges of late. In June, for example, the SEC sued Binance and its head Changpeng Zhao for violating securities trading rules. The court document showed that the commission recognized the BNB token, as well as the BUSD stablecoin, which carries the exchange's brand, as securities.

The SEC also demanded the blocking of assets of Binance's U.S. unit. The exchange said the regulator's demand was unreasonable and had nothing to do with concern for user funds, which the SEC cited as the reason for the motion.

In August, the media reported that Changpeng Zhao intends to completely close the U.S. division of the exchange (Binance.US). The head of the site allegedly feared possible damage to the company and its customers due to regulatory pressure.