Mastercard, a leading financial services company, has announced that it will terminate its four cryptocurrency card programs in Argentina, Brazil, Colombia, and Bahrain, effective September 22.
Further, this decision comes in partnership with the popular cryptocurrency exchange Binance, which facilitated these programs. The spokesperson for Mastercard, responding via email, confirmed the conclusion of these programs.
Details of the Binance Crypto Card Programs
The cryptocurrency cards offered by the exchange allowed users to make payments using traditional currencies. These transactions were funded through the users’ cryptocurrency holdings on the Binance exchange. The termination of these programs means that users in the aforementioned countries will no longer be able to utilize this payment method for their transactions.
Impact on Mastercard’s Crypto Strategy
It’s important to note that the conclusion of these specific crypto card programs with BNB exchange will not affect any of Mastercard’s other ongoing cryptocurrency card initiatives.
Further, Mastercard has been actively exploring partnerships with various cryptocurrency firms, including exchanges like Gemini. The company’s head of crypto and blockchain, Raj Dhamodharan, emphasized earlier that any card program undergoes comprehensive due diligence and continuous monitoring.
Legal and Regulatory Context
However, the decision to terminate crypto card programs with Binance comes amid legal and regulatory challenges faced by the exchange. Binance and its CEO, Changpeng Zhao, were sued by U.S. regulators in June on allegations of deceptive operations. Consequently, Binance has vowed to vigorously defend itself against these allegations.
Consequently, Binance, on the other hand, has confirmed via its customer support account on social media platform X (formerly known as Twitter) that the Binance Card will no longer be accessible to users in Latin America and the Middle East. Moreover, this announcement aligns with Mastercard’s decision to end the crypto card programs in these regions.
Mastercard’s termination of its cryptocurrency card programs in collaboration with BNB marks a significant development in the crypto and financial landscape in the affected countries. Lastly, a combination of factors, including Binance’s legal challenges and Mastercard’s continuous evaluation of its crypto-related partnerships, appears to have influenced the decision.
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