Cryptocurrency exchange Binance has faced a setback as payment card networks Mastercard and Visa have cut ties with the platform. This move reflects a growing wariness among traditional financial institutions towards working with Binance, largely due to regulatory scrutiny and concerns about financial compliance within the crypto industry.
In particular, Mastercard has announced that it will no longer offer Binance-branded cards in Latin America and the Middle East. These cards previously allowed customers to use their crypto to make purchases. Binance has tried to downplay the impact on users, stating that only a small percentage of users in the affected markets will be impacted. Additionally, Binance accounts globally remain unaffected, and users can still shop and send crypto using Binance Pay.
Meanwhile, Mastercard has confirmed the end of their partnership with Binance. This means that four pilot Binance co-branded Mastercard card programs in Argentina, Brazil, Colombia, and Bahrain will be discontinued. Visa has also distanced itself from Binance, ceasing to issue new co-branded cards with the company in Europe since July.
These recent developments underscore the tepid response of the financial services industry towards cryptocurrencies. While some institutions may still be willing to dip their toes into the crypto space, the regulatory scrutiny and compliance concerns have made them increasingly cautious. The loss of support from major payment card networks like Mastercard and Visa serves as a clear reminder of the challenges that crypto exchanges like Binance face in gaining mainstream acceptance and integration into traditional financial systems.
As the crypto industry continues to evolve and regulators work to establish clearer guidelines, it remains to be seen how financial institutions will navigate this space. However, for now, the withdrawal of support from Mastercard and Visa is a significant blow to Binance and highlights the lingering skepticism within the industry.
“Travel aficionado. Incurable bacon specialist. Tv evangelist. Wannabe internet enthusiast. Typical creator.”