Mastercard and Binance will no longer collaborate on crypto cards
August 25, 2023 8:37 AM
A Mastercard spokesman confirmed in an email on Thursday that the company would be ending its four crypto card programs in Argentina, Brazil, Colombia, and Bahrain as of September 22.
With the Binance card, customers can make purchases with fiat currency using the funds stored in their Binance cryptocurrency wallet.
Partnerships with crypto exchanges such as Gemini are also listed on Mastercard's website. According to a Mastercard representative, the decision will not affect the company's other crypto card initiatives.
Binance is experiencing difficulties in the law and with regulators. In June, U.S. regulators filed a lawsuit against the cryptocurrency exchange and its CEO, Changpeng Zhao, alleging that the pair were engaged in a "web of deception." To protect itself, Binance has promised to act "vigorously."
In an April interview→ with Reuters, Raj Dhamodharan, Mastercard's head of crypto and blockchain, said the company was actively pursuing new crypto partnerships. However, he did say that any card program "goes through full due diligence" and is regularly reviewed, though he would not comment on Binance in particular.
A Mastercard representative would not say who made the decision to discontinue the Binance program or why it was ending.
An email asking Binance for comment went unanswered for some time. Earlier on Thursday, the exchange's customer assistance account on X (formerly Twitter) announced the fact that the Binance Card "will no longer be available to users in Latin America and the Middle East."