Global payments giant Mastercard is reportedly terminating its cryptocurrency card partnership with the Binance cryptocurrency exchange next month, according to Bloomberg. The report did not reveal the reason for the change, but suggested it could be due to heightened regulatory scrutiny of the troubled cryptocurrency exchange.
Mastercard and Binance will end four crypto card programs in Argentina, Brazil and Colombia starting September 22, according to Bloomberg report August 24th.
The company reportedly stated that the decision to terminate the program will not affect any of Mastercard’s other crypto card programs. It added that the buffer period will allow cardholders to convert any assets held in their Binance wallets.
Prepaid crypto cards from Mastercard and Binance allow users to make payments in their local fiat currency, funded with cryptocurrencies they hold on exchanges.
The partnership ended about a year after Binance and Mastercard first teamed up last August to launch a prepaid card for residents of Argentina. In early 2023, the companies expanded their partnership with another prepaid crypto card in Latin America.
The report suggested that the termination of the partnership was in response to emerging regulatory issues for Binance around the world.
As previously reported, Binance and its CEO Changpeng Zhao “CZ” have been sued by the SEC for allegedly violating local securities laws. The CFTC also filed a lawsuit against Binance for not properly registering with the derivatives regulator.
Binance is also reportedly under investigation by the U.S. Department of Justice for allowing Russians to use the exchange in violation of U.S. sanctions.
related: Binance Bans Russian Banks from Using ‘Yellow and Green Cards’ on Its Platform
According to the new report, Mastercard is not the only company that has distanced itself from Binance due to global regulatory concerns. According to Binance, Visa has also stopped issuing new co-branded cards with Binance in Europe since July.
Mastercard, Visa and Binance did not immediately respond to Cointelegraph’s request for comment.
Bookmark this article as an NFT Preserve this moment in history and show your support for independent journalism in the cryptocurrency space.
Magazine: The Big Question: Did the NSA Create Bitcoin?
Svlook
