Latin America and the Middle East see the closure of Mastercard and Binance
All the crypto card collaboration and services
Mastercard and Binance, the global payment giant and cryptocurrency exchange, respectively, have decided to discontinue their crypto debit card program in Argentina, Brazil, Colombia, and Bahrain. The Binance Card, which is funded with cryptocurrency assets and functions similarly to traditional debit cards for purchasing goods, will no longer be available in these countries. Binance clarified in a response on Twitter through its customer support account that only 1% of its customer base in Latin America and the Middle East will be affected by the cessation of this service. The exchange assured users that Binance accounts globally remain unaffected. Additionally, users can still engage in shopping and cryptocurrency transactions through Binance Pay, a secure and borderless contactless payment technology developed by Binance. Neither Binance nor Mastercard immediately provided an explanation for the suspension of Binance Card services, and they did not respond to Forkast's request for clarification.
This decision follows the recent launch of Binance Pay, a contactless payment service, in Brazil. However, Binance has faced challenges on other fronts, including the termination of its contract with London-based payment processor Checkout.com due to concerns related to money laundering and compliance. Furthermore, in June, Binance announced that Paysafe Payment Solutions, its euro banking partner, would cease offering services from September 25. Last week, Binance made public its decision to shut down Binance Connect, its fiat-to-crypto payment infrastructure for cryptocurrencies. Binance has been under increasing legal and regulatory scrutiny, particularly in the United States. The Securities and Exchange Commission (SEC) filed a lawsuit against the platform in June, alleging the operation of unregistered securities exchanges. Simultaneously, the Department of Justice is investigating Binance for enabling Russian users to bypass sanctions and access the exchange. These developments underscore the challenges Binance faces in navigating the evolving landscape of cryptocurrency regulations and compliance.
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