Binance has reportedly reintroduced Mastercard payments for crypto purchases. This step arrived after Mastercard paused this service in August 2023 due to legal challenges facing Binance in the US. Both the US Securities and Exchange Commission and the Commodity Futures Trading Commission had filed multiple charges against the exchange, leading to a temporary cessation of these services.
Enhanced Security Measures
Binance's spokesperson told Coindesk that this decision was reached after a review of the controls and processes that Binance has implemented. Mastercard now allows Binance-related purchases on its network and plans to support other services, such as withdrawals, later.
Mastercard reportedly confirmed this development but emphasized the importance of continuous monitoring. The payment giant mentioned that it has reviewed the controls and processes that Binance has put into place. Based on those efforts, the company decided to enable support of Binance purchases and deposits on its network.
Last year, Binance and MasterCard ended their partnership on crypto card programs in several countries. This move highlighted an increasing divide between major financial institutions and the crypto industry, Finance Magnates reported. The suspension affected countries such as Argentina, Brazil, Colombia, and Bahrain, ending access to crypto card services that allow transactions in traditional currencies using their crypto assets on Binance.
Suspension of Co-branded Cards
Mastercard’s decision followed Visa’s earlier step of halting the issue of co-branded cards with Binance in Europe. This trend signaled a broader reluctance among traditional financial entities to engage with cryptocurrency firms. In a report by Reuters, Binance's spokesperson confirmed the cessation of the four crypto card programs in the mentioned countries.
Similarly, Binance halted crypto-backed debit card services in Latin America and the Middle East on September 21, 2023. This decision impacted users in regions where Binance Card was previously operational. Binance proposed Binance Pay as an alternative to continue supporting crypto transactions via mobile devices.
In addition to financial service changes, Binance has encountered significant regulatory issues. The exchange faced allegations from the Wall Street Journal regarding its use of sanctioned banks in Russia for peer-to-peer crypto transfers. This controversy further strained Binance's relations with financial regulators and traditional banking systems.
This article was written by Jared Kirui at www.financemagnates.com.
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