Mastercard and Visa are refusing to issue payment crypto-currency cards for Binance amid regulatory problems of the exchange. This is reported Bloomberg.
Visa has closed the release of joint products in Europe since July, a representative of the crypto trading platform told the agency. Mastercard will completely end its partnership with Binance in September.
The payment companies declined to comment on their decisions.
In March, the CFTC filed a civil lawsuit against Binance. According to the department, the exchange violated the rules for trading derivatives by operating without proper registration.
In June, claims against Binance and its head, Changpeng Zhao, were put forward by the SEC. The regulator filed a total of 13 charges.
Amid regulatory pressure on the exchange in the US, the platform has run into trouble in Europe. Binance has withdrawn applications for licenses in the UK, Austria, Cyprus and announced its withdrawal from the Netherlands. The Belgian Financial Services and Markets Authority ordered the exchange to cease operations. The media reported on the investigation of the authorities in relation to the Binance branch in France.
Following the bailout of Signature Bank in March and the liquidation of Silvergate Bank in the same month, the exchange’s US arm has experienced banking difficulties. The platform held customer dollar deposits with these institutions.
In May, Binance suspended local currency deposits for Australian users due to the actions of the service provider. The exchange has also stopped depositing and withdrawing funds in British pounds sterling as a result of non-cooperation by Paysafe.
The firm has announced a complete cessation of service to Binance as of September. Digital payment platform Checkout.com also announced its withdrawal from the exchange.
The latter decided to close the Binance Connect (Bifinity) service, which has been operating since March 2022. The product allowed merchants to accept cryptocurrency payments through Visa and Mastercard systems.
The Binance Card initiative was launched by the exchange as part of a wider adoption of digital assets. It enabled users to pay for goods and services in cryptocurrencies through payment cards.
The day before, the exchange announced that it would stop supporting the product in Latin America and the Middle East. According to the announcement, less than 1% of users in the respective markets will be affected.
According to Bloomberg, we are talking about Argentina, Brazil, Colombia and Bahrain. The step is related to the Mastercard decision. The payment company clarified that it does not affect other programs with participants in the crypto industry.
Recall that in March, Bybit bitcoin exchange issued a debit card in cooperation with Mastercard.
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2023-08-25 12:19:06
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