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News

Mastercard And Binance Bid Adieu To Crypto Cards In 4 Countries Amid Legal Challenge

August 24, 2023 - Around 2 mins mins to read

Key Points:

  • Mastercard and Binance will stop joint crypto card programs in select countries by Sept. 22, citing convenience for traditional currency payments via crypto holdings.
  • Other Mastercard crypto projects remain untouched; the short-lived Brazilian financial accessibility alliance concludes.
  • Binance faces legal issues, while Mastercard pursues new blockchain partnerships despite the termination.
According to Reuters, Mastercard, in collaboration with cryptocurrency exchange Binance, has announced the discontinuation of its crypto card programs in Argentina, Brazil, Colombia, and Bahrain.
Mastercard And Binance Bid Adieu To Crypto Cards In 4 Countries Amid Legal Challenge

The termination, set for September 22, comes as a significant move affecting users who utilized Binance cards to facilitate payments in traditional currencies through their cryptocurrency holdings.

While this decision impacts the mentioned countries, Mastercard assures that its other crypto-card initiatives remain unaffected.

Notably, the Binance cards provided a novel way for users to seamlessly conduct transactions in conventional currencies backed by their crypto assets on the Binance exchange.

The collaboration between Mastercard and Binance initially held the promise of enhanced financial accessibility for Brazilians through a Mastercard-powered Binance prepaid card. However, this partnership has been relatively short-lived, lasting just over six months.

Amidst this development, Binance has been grappling with legal and regulatory complications. U.S. authorities filed a lawsuit against the exchange and its CEO, Changpeng Zhao, citing allegations of deceptive operations.

In contrast, Mastercard’s pursuit of partnerships with other crypto firms continues, as the company’s Head of Crypto and Blockchain, Raj Dhamodharan, revealed earlier this year.

The inception of the Binance Card pilot took place in Argentina last August, aiming to bridge the gap between cryptocurrency usage and conventional purchases.

While Binance’s recent termination of crypto debit card services across Latin America and the Middle East, effective August 25, signifies a setback, the broader implications of this shift in strategy are yet to unfold.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Mastercard And Binance Bid Adieu To Crypto Cards In 4 Countries Amid Legal Challenge

Key Points:

  • Mastercard and Binance will stop joint crypto card programs in select countries by Sept. 22, citing convenience for traditional currency payments via crypto holdings.
  • Other Mastercard crypto projects remain untouched; the short-lived Brazilian financial accessibility alliance concludes.
  • Binance faces legal issues, while Mastercard pursues new blockchain partnerships despite the termination.
According to Reuters, Mastercard, in collaboration with cryptocurrency exchange Binance, has announced the discontinuation of its crypto card programs in Argentina, Brazil, Colombia, and Bahrain.
Mastercard And Binance Bid Adieu To Crypto Cards In 4 Countries Amid Legal Challenge

The termination, set for September 22, comes as a significant move affecting users who utilized Binance cards to facilitate payments in traditional currencies through their cryptocurrency holdings.

While this decision impacts the mentioned countries, Mastercard assures that its other crypto-card initiatives remain unaffected.

Notably, the Binance cards provided a novel way for users to seamlessly conduct transactions in conventional currencies backed by their crypto assets on the Binance exchange.

The collaboration between Mastercard and Binance initially held the promise of enhanced financial accessibility for Brazilians through a Mastercard-powered Binance prepaid card. However, this partnership has been relatively short-lived, lasting just over six months.

Amidst this development, Binance has been grappling with legal and regulatory complications. U.S. authorities filed a lawsuit against the exchange and its CEO, Changpeng Zhao, citing allegations of deceptive operations.

In contrast, Mastercard’s pursuit of partnerships with other crypto firms continues, as the company’s Head of Crypto and Blockchain, Raj Dhamodharan, revealed earlier this year.

The inception of the Binance Card pilot took place in Argentina last August, aiming to bridge the gap between cryptocurrency usage and conventional purchases.

While Binance’s recent termination of crypto debit card services across Latin America and the Middle East, effective August 25, signifies a setback, the broader implications of this shift in strategy are yet to unfold.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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