Mastercard announced on Thursday that it is ending four crypto cards with crypto exchange Binance. The four crypto card programs would no longer be valid in Argentina, Bahrain, Brazil, and Colombia, by late September. Although Binance is facing several regulatory challenges in U.S., neither the crypto exchange nor did the second largest global payment financial processor comment on the reason for the breaking of their relationship.
Earlier on Thursday, Binance announced on social media that the Binance card with Mastercard would not be available to users in the Middle East as well as in Latin America. The card will no longer be valid as on September 22, 2023. It also said that less than one percent of its users have been impacted in these markets.
Mastercard confirmed via a spokesperson to various outlets including CNBC and Reuters that its co-branded Mastercard pilot programs with Binance would not be effective from September 22, 2023. It confirmed the countries mentioned by Binance in its social media post and said that users have been given time to convert holdings if any, in their Binance wallet.
In July, another global payment giant Visa ended its co-branded cards with Binance in Europe, according to a report in Bloomberg.
In mid-August, Forbes reported that London based credit card processing company Checkout had also terminated its relationship with Binance.
Several major financial institutions seem to be winding down their initial positive response to crypto services after the euphoria in the crypto industry, which had set in during the pandemic.
The massive collapse of FTX, a huge crypto exchange, followed by bankruptcy of several other crypto companies, dulled the sheen of the crypto industry.
Binance is facing intense scrutiny from U.S. Securities and Exchange Commission (SEC) as well as the Commodity Futures Trading Commission (CFTC). The allegations against Binance and its CEO Changpeng Zhao are similar to those that have been made against former CEO of FTX Sam Bankman-Fried.
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