Binance has reportedly reintroduced Mastercard
payments for crypto purchases. This step arrived after Mastercard paused this
service in August 2023 due to legal challenges facing Binance in the US. Both the
US Securities and Exchange Commission and the Commodity Futures Trading
Commission had filed multiple charges against the exchange, leading to a
temporary cessation of these services.
Enhanced Security Measures
Binance’s spokesperson told Coindesk that this
decision was reached after a review of the controls and processes that Binance has implemented. Mastercard now allows Binance-related purchases on
its network and plans to support other services, such as withdrawals, later.
Mastercard reportedly confirmed this development but
emphasized the importance of continuous monitoring. The payment giant mentioned
that it has reviewed the controls and processes that Binance has put into
place. Based on those efforts, the company decided to enable support of Binance
purchases and deposits on its network.
Last year, Binance and MasterCard ended their partnership on crypto card programs in several countries. This move highlighted
an increasing divide between major financial institutions and the crypto
industry, Finance Magnates reported. The suspension affected countries such as
Argentina, Brazil, Colombia, and Bahrain, ending access to crypto card services
that allow transactions in traditional currencies using their crypto assets on
Binance.
Suspension of Co-branded Cards
Mastercard’s decision followed Visa’s earlier step of
halting the issue of co-branded cards with Binance in Europe. This trend
signaled a broader reluctance among traditional financial entities to engage
with cryptocurrency firms. In a report by Reuters, Binance’s spokesperson
confirmed the cessation of the four crypto card programs in the mentioned
countries.
Similarly, Binance halted crypto-backed debit card
services in Latin America and the Middle East on September 21, 2023. This
decision impacted users in regions where Binance Card was previously
operational. Binance proposed Binance Pay as an alternative to continue
supporting crypto transactions via mobile devices.
In addition to financial service changes, Binance has
encountered significant regulatory issues. The exchange faced
allegations from the Wall Street Journal regarding its use of sanctioned banks
in Russia for peer-to-peer crypto transfers. This controversy further
strained Binance’s relations with financial regulators and traditional banking
systems.
This article was written by Jared Kirui at www.financemagnates.com.
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