Binance begins to move away from card operators
Both Visa and MasterCard have begun winding down their card business with the cryptocurrency exchange
In an unexpected twist, Binance Card holders in Latin America were surprised this week with the announcement of the final closure of the cryptocurrency card in collaboration with Mastercard.
Although none of the parties involved has revealed the reasons behind this decision, Binance announced the interruption of the replacement of physical and virtual cards, which will result in the withdrawal of its product from the markets in Argentina, Colombia and Brazil. This measure not only affects Latin America, but also reaches users in Bahrain, in the Middle East region.
Exclusive information from Bloomberg revealed that this move is part of the outcome of the association between Mastercard and Binance for the issuance of cards linked to cryptocurrencies. “The co-branded Mastercard card pilot programs with Binance will be discontinued,” Seth Eisen, the company’s senior vice president of communications, said in a statement to Decrypt.
The expected date for the cessation of operations is September 22, and it is clarified that this will not affect the other cryptographic card programs supported by Mastercard. The cards will cease to be operational as of said date.
Binance is not alone in this scenario, as Visa has also made the decision to distance itself from Binance due to the regulatory issues surrounding the exchange. According to information from Bloomberg, Visa has chosen to stop its association with Binance in the field of cards. Although attempts were made to obtain statements from Visa, the cryptocurrency platform has not received a response.
This news comes at a time of turbulence for Binance, which is under scrutiny from financial regulators around the world. This year, the exchange and its CEO, Changpeng Zhao, have faced two lawsuits filed by US authorities, accusing them of failing to register properly and violating federal securities and derivatives regulations.
The Binance Card program was first launched in 2020 in collaboration with Visa. This card allowed users to transact with cryptocurrencies and earn rewards in the form of cashback. Subsequently, Binance entered into an alliance with Mastercard to launch a similar card program, with the aim of encouraging broader adoption of cryptocurrencies.
K. Tovar
Source: Diariobitcoin
(Reference image source: Kanchanara, Unsplash)
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