- Mastercard and Binance to end crypto card initiatives in specified markets by September 22nd.
- Only a fraction of users affected, are able to use cards until September 21, 2023.
- Binance faces regulatory issues, Mastercard seeks crypto partnerships, and due diligence is emphasized.
On August 24th, Reuters reported that Mastercard and the cryptocurrency exchange Binance are set to discontinue their four crypto card initiatives in Argentina, Brazil, Colombia, and Bahrain. The termination is scheduled for September 22nd, as confirmed by a spokesperson from Mastercard through an email statement on Thursday.
Similar to conventional debit cards, this product allows users to seamlessly cover their day-to-day expenses using cryptocurrency assets.
However, the transition will impact only a marginal percentage of Binance’s extensive user base, affecting less than 1% of users specifically in markets like Argentina, Brazil, Colombia, and Bahrain. The program’s participants will be able to continue using the crypto card until September 21, 2023, beyond which the card will no longer remain operational for transactions.
It’s imperative to clarify that this decision holds no bearing on Binance accounts globally. Users across the world will remain unaffected by this transition. As an alternative to the soon-to-be-concluded crypto card program, Binance Customer Support suggested users explore Binance Pay—an advanced, secure, and cross-border cryptocurrency payment solution crafted by Binance.
Back in January, Mastercard and Binance jointly announced on Monday their plan to introduce a prepaid card in Brazil, which happens to be the largest economy in Latin America. This initiative aligned with the cryptocurrency conglomerate’s objective to “expand the bridge between conventional financial systems and the realm of cryptocurrencies.” As of July 2020, the distribution of crypto debit cards had commenced across European nations and various other global locations. Subsequently, the cryptocurrency exchange forged a collaboration with the payment processor Swipe, aiming to extend the availability of crypto debit cards into the United States.
Mastercard’s official website enumerates affiliations with various cryptocurrency exchanges, including Gemini. The spokesperson clarified that this resolution will not exert any influence on Mastercard’s other ongoing cryptocurrency card initiatives. Additionally, a representative from Mastercard chose not to provide any comments regarding the reasons behind the termination of the Binance program or the entity responsible for making this decision.
Binance is currently confronting legal and regulatory hurdles. In June, regulatory authorities in the United States filed a lawsuit against the cryptocurrency exchange and its CEO Changpeng Zhao, asserting their involvement in a purported “web of deception.” Binance has asserted its intention to mount a robust defense in response. Recently, the exchange lost its banking partner for EUR transactions, as well.
Mastercard’s head of crypto and blockchain, Raj Dhamodharan, communicated in April about the company’s aspiration to establish further partnerships with cryptocurrency firms. While refraining from commenting on Binance directly, he emphasized that any card program undergoes a comprehensive due diligence process and remains under continuous scrutiny.
