The crypto space is in turmoil after MasterCard, a global payment services giant, announced the imminent termination of its services and alliance with crypto exchange Binance.
Mastercard cuts all ties with Binance
Binance, the world’s largest cryptocurrency exchange by trading volume, is facing new challenges that could affect its reputation and growth rate. According to reportsMastercard will discontinue its services on Binance, ending a long-standing relationship and crypto card programs starting Friday, September 22.
The reason for the abrupt termination has not been clarified by Mastercard. Some have attributed the news to recent news regulatory and litigation challenges Binance has been against since this year.
Binance refrained from commenting on the reason for the suspension or who made the decision first. However, the crypto exchange has reassured users around the world by stating that their Binance accounts are not affected by the news and they can continue their crypto transactions as usual.
“Binance accounts around the world are not affected. Where available, users will also be able to shop and send crypto with Binance Pay, a contactless, borderless and secure cryptocurrency payment technology designed by Binance,” said Binance.
Mastercard and Binance have been working together as partners for about four years. Around August 2022, they both joined forces to launch debit card programs for four major countries, allowing users in Brazil, Argentina, Colombia, and Bahrain to access cryptocurrency assets through their Mastercards linked to a cryptocurrency wallet.
Binance first partnered with Mastercard before launch payments with crypto cards in Brazil and Latin America in early 2023. The crypto exchange subsequently made a similar announcement, launching prepaid crypto cards in Argentina in August 2022.
BNB price struggles amid regulatory pressures | Source: BNBUSD on Tradingview.com
Financial services companies break away after SEC lawsuit
Binance has been embroiled in a legal battle with the US Securities and Exchange Commission (SEC) since June, when the SEC sued the crypto exchange for allegedly offering unregistered securities. The regulator has tried this further freeze all Binance funds stating that the crypto exchange was operating a “web of deception” and thirteen charges were filed against Binance.
Since then, Binance has faced regulatory hurdles and industry challenges, with many companies ending their longstanding partnerships price of BNB decreasing as a result.
The cryptocurrency exchange has also completed and executed multiple projects over the course of a month massive layoffs following the SEC lawsuits.
Recently, Binance has ceased all cryptocurrency services activities on its official provider of fiat-to-cryptocurrency payments, Binance Connect. The cryptocurrency exchange too has discontinued its partnership with Checkout.coma global payment service, after Checkout’s CEO terminated his contract this month.
Visa, another payment services giant, also cut ties with Binance in July and stopped providing co-branded cards with Binance in Europe.
At this point, it is uncertain what the outcome of the SEC and Binance case would be. However, the results will undoubtedly have implications for the crypto industry and the financial sector.
Featured image of CoinCu, chart from Tradingview.com
