In a recent development, Mastercard and cryptocurrency exchange Binance have jointly announced their decision to discontinue their partnership for crypto card programs in several regions, including Argentina, Brazil, Colombia, and Bahrain. Effective September 22, the collaboration will come to an end, rendering Mastercard’s Binance-branded cards unavailable in Latin America and the Middle East.
This collaboration had enabled Binance users to transact using traditional currencies, with the card expenses being funded from their cryptocurrency holdings within the exchange. Binance’s customer support account on Twitter shared that only a minimal fraction of their user base, less than 1% in the specified markets, would be affected by this discontinuation. The card will cease to be operational on September 21, 2023.
Despite this termination, Binance assured users that their global accounts on the platform remain unaffected. Furthermore, Binance Pay, the company’s borderless, secure, and contactless cryptocurrency payment solution, remains accessible for users to shop and conduct crypto transactions where available.
Mastercard maintains partnerships with several crypto exchanges, including Gemini, according to information available on its website. This decision, however, will not impact any of Mastercard’s other ongoing crypto card programs.
The decision arrives against the backdrop of legal and regulatory hurdles Binance is grappling with. In June, U.S. regulators initiated a lawsuit against the exchange and its CEO, Changpeng Zhao, alleging deceptive practices. Binance has unequivocally stated its intention to vigorously defend itself.
While Mastercard’s Head of Crypto and Blockchain, Raj Dhamodharan, declined to comment specifically on Binance, he highlighted in April that any card program enters a comprehensive due diligence process and undergoes ongoing monitoring. This indicates Mastercard’s ongoing interest in forging partnerships within the cryptocurrency sector.
Binance’s customer support account also addressed the development on its X (formerly Twitter) platform, announcing that the Binance Card would no longer be accessible to users in Latin America and the Middle East.
