Global payments giant Mastercard has announced that it will be terminating its cryptocurrency card partnership with the Binance crypto exchange next month, as confirmed by the company to Cointelegraph on Aug. 25.
The spokesperson for Mastercard stated that the co-branded crypto card programs in Argentina, Brazil, and Colombia with Binance will be discontinued starting Sept. 22. The spokesperson added, “We had four pilot programs in market with them — Argentina, Brazil, Colombia, and Bahrain. This decision applies to each of these Binance programs. There is no impact on any other crypto card program.”
The prepaid crypto card offered by Mastercard and Binance enables users to make payments in local fiat currencies using their crypto holdings on the exchange. During the wind-down period, cardholders will have the opportunity to convert any holdings in their Binance wallets.
The reason for the change was not disclosed by Mastercard, although online reports like Bloomberg suggested it might be due to increased regulatory scrutiny of Binance.
This collaboration comes to an end approximately one year after Binance and Mastercard first partnered in August last year to launch a prepaid card for residents of Argentina. The partnership was later expanded in early 2023 with another prepaid crypto card in Latin America.
The report indicates that the termination of the partnership is a response to the renewed regulatory issues faced by Binance globally.
Previously, Binance and its CEO Changpeng “CZ” Zhao were sued by the United States Securities and Exchange Commission for allegedly violating local securities laws. Additionally, the U.S. Commodity Futures Trading Commission filed a lawsuit against Binance for not properly registering with the derivatives regulator.
Furthermore, Binance has reportedly been under investigation by the U.S. Department of Justice for allowing Russians to use the exchange in violation of U.S. sanctions.
According to the new report, Mastercard is not the only company distancing itself from Binance due to regulatory issues. Binance reportedly stated that Visa has also stopped issuing new co-branded cards with them in Europe since July.
Visa and Binance have not responded immediately to Cointelegraph’s request for comment.
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