World Crypto Global
- Written by: Jared Kirui
- Thu, 06 Jun 2024
- Israel
Binance has reportedly reintroduced Mastercardpayments for crypto purchases. This step arrived after Mastercard paused thisservice in August 2023 due to legal challenges facing Binance in the US. Both theUS Securities and Exchange Commission and the Commodity Futures TradingCommission had filed multiple charges against the exchange, leading to atemporary cessation of these services.Enhanced Security Measures Binance's spokesperson told Coindesk that thisdecision was reached after a review of the controls and processes that Binance has implemented. Mastercard now allows Binance-related purchases onits network and plans to support other services, such as withdrawals, later. Mastercard reportedly confirmed this development butemphasized the importance of continuous monitoring. The payment giant mentionedthat it has reviewed the controls and processes that Binance has put intoplace. Based on those efforts, the company decided to enable support of Binancepurchases and deposits on its network. Last year, Binance and MasterCard ended their partnership on crypto card programs in several countries. This move highlightedan increasing divide between major financial institutions and the cryptoindustry, Finance Magnates reported. The suspension affected countries such asArgentina, Brazil, Colombia, and Bahrain, ending access to crypto card servicesthat allow transactions in traditional currencies using their crypto assets onBinance.Suspension of Co-branded CardsMastercards decision followed Visas earlier step ofhalting the issue of co-branded cards with Binance in Europe. This trendsignaled a broader reluctance among traditional financial entities to engagewith cryptocurrency firms. In a report by Reuters, Binance's spokespersonconfirmed the cessation of the four crypto card programs in the mentionedcountries. Similarly, Binance halted crypto-backed debit cardservices in Latin America and the Middle East on September 21, 2023. Thisdecision impacted users in regions where Binance Card was previouslyoperational. Binance proposed Binance Pay as an alternative to continuesupporting crypto transactions via mobile devices. In addition to financial service changes, Binance hasencountered significant regulatory issues. The exchange facedallegations from the Wall Street Journal regarding its use of sanctioned banksin Russia for peer-to-peer crypto transfers. This controversy furtherstrained Binance's relations with financial regulators and traditional bankingsystems.This article was written by Jared Kirui at www.financemagnates.com.
