Cryptocurrency exchange Binance and Mastercard have announced that they will discontinue crypto card programmes in several countries.
Specifically, the two companies have announced the discontinuation of their four crypto card programs in Argentina, Brazil, Colombia, and Bahrain, effective from 22 September 2023. A representative from Mastercard conveyed this information via email. The crypto cards offered by Binance allowed individuals to conduct transactions in traditional currencies, utilising the funds from their cryptocurrency holdings within the Binance platform.
It's worth noting that Mastercard has established collaborations with various cryptocurrency exchanges, including Gemini. Despite this new decision, it was clarified by the spokesperson that Mastercard's other crypto-card initiatives will remain unaffected.
Binance has been navigating a series of legal and regulatory obstacles. In June 2023, US regulatory authorities filed a lawsuit against the crypto exchange and its CEO Changpeng Zhao, alleging deceptive operations. Binance responded, asserting its intent to vigorously defend against these claims.
Mastercard representatives previously stated in April that the company was actively pursuing additional partnerships with cryptocurrency firms. While declining to comment specifically on Binance, they emphasised that every card programme undergoes comprehensive due diligence and continuous monitoring.
Reuters reports that both Mastercard and Binance declined to provide details regarding the reasons behind the termination of the Binance programme or the decision-making process.
Binance's customer support account on the X platform, formerly known as Twitter, announced earlier that the Binance Card will no longer be accessible to users in Latin America and the Middle East. Binance's decision to shut down its crypto debit card service will take effect on 25 August 2023. The crypto debit card functioned similarly to traditional debit cards, allowing users to make everyday purchases. The key distinction was that these cards were funded with cryptocurrency assets.
The termination of crypto debit card services in the specified regions will be completed by 21 September 2023. Binance has clarified that even after the service termination, refunds and dispute resolutions will continue to be processed until 20 December 2023
Binance's initial plan to introduce crypto-backed debit cards was unveiled in April 2020 as part of a new strategy to enter the global payment market. By July 2020, these crypto debit cards were arriving in various European countries and other global destinations. Subsequently, Binance entered a partnership with payment processor Swipe, with aspirations of extending the offering to the United States.
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