Visa and Mastercard have announced that they will end their crypto card partnership with Binance, the world’s largest cryptocurrency exchange. The decision will impact less than 1% of Mastercard’s users, according to a spokesperson for the company.
The move comes as Binance faces increasing regulatory scrutiny around the world. In June, the U.S. Securities and Exchange Commission (SEC) sued Binance for allegedly operating a “web of deception” to sell unregistered securities. Binance has denied the allegations.
Mastercard and Visa have both said that they are committed to working with regulated cryptocurrency businesses. However, the decision to end their partnership with Binance suggests that they are concerned about the exchange’s regulatory compliance.
The move is also a blow to Binance’s efforts to expand its global reach. The exchange had been planning to launch a crypto card in the United States, but those plans have now been put on hold.
What does this mean for the future of crypto cards?
The decision by Visa and Mastercard to end their partnership with Binance is a setback for the future of crypto cards. However, it is important to note that these two companies are not the only players in the market. There are a number of other payment processors that are still willing to work with cryptocurrency businesses.
It is also worth noting that the crypto card market is still in its early stages. There are a limited number of cards available, and they are not yet widely accepted by merchants. As the market matures, it is likely that more payment processors will become comfortable working with cryptocurrency businesses.
Also Read: Binance to Suspend Crypto Debit Card Services in Latin America and Middle East
What does this mean for Binance users?
Binance users who have a crypto card issued by Visa or Mastercard will still be able to use their cards until September 22, 2023. After that, they will need to find a new card issuer.
Binance has said that it is working on a new card that will be issued by a different payment processor. However, it is not clear when this card will be available.
In the meantime, Binance users who want to continue using a crypto card can consider one that is issued by a different company, such as Crypto.com or Coinbase.
Conclusion
The decision by Visa and Mastercard to end their partnership with Binance is a significant development in the cryptocurrency industry. It is a sign that the two companies are still cautious about the risks associated with cryptocurrency. However, it is also a reminder that the crypto card market is still in its early stages, and there is still room for growth.
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