Cryptocurrency exchange Binance has lost key business relationships with Mastercard and Visa amid intensifying regulatory pressure and concerns surrounding Binance’s financial compliance controls.
Mastercard will soon end its branded crypto card programs with Binance in Latin America and the Middle East. Similarly, Visa ceased issuing new co-branded cards with Binance in Europe as of July.
The card partnerships had allowed Binance users to spend their crypto balances for everyday purchases. However, only a small portion of users were impacted by the severing of these ties.
Mastercard and Visa distancing themselves from Binance highlights increasing wariness from traditional finance firms to partner with cryptocurrency companies facing legal turmoil.
Binance is battling lawsuits from US regulators like the SEC alleging commingling of customer funds. While denying accusations, Binance was recently dropped by payments processor Checkout.com over compliance worries.
As crypto aims for mainstream adoption, maintaining relationships with influential financial institutions is key. However, legal issues and lax controls have jeopardized crypto’s reputation.
Mastercard insists it remains committed to crypto overall despite cutting ties with Binance specifically. But Binance’s damaged standing shows regulators’ actions carry real consequences. Rebuilding trust in crypto’s compliance will be an uphill battle.
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