Mastercard has confirmed it will cease its partnership with crypto exchange Binance Holdings. Affected by the decision are Mastercard’s co-branded card programs in Argentina, Brazil, Colombia and Bahrain. According to Bloomberg’s report on September 22, a spokesperson for Mastercard confirmed the news and sent an email stating the wind-down period of the program will provide cardholders with an opportunity to convert any holdings in their Binance wallet into cash.
The statement added that there is no impact on any other crypto card program. A spokesperson for Binance also confirmed the report, saying that it only affects a small portion of users (less than 1% in the markets listed). The product will be available until September 21, 2023, after which the card will be discontinued.
The reason behind Mastercard’s decision remains unknown but comes at a time when Binance is facing legal and regulatory scrutiny from the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) for alleged violations of securities rules and allowing American users to access the platform without adhering to all necessary regulations. Binance denies the claims.
The co-branded card programs developed by Mastercard and Binance allowed users to use their crypto assets to pay for everyday expenses, encouraging the adoption of cryptocurrency in daily transactions. Cardholders must now convert any remaining holdings to cash in order to avoid the termination of their partnership.
Binance launched its Binance Card in Argentina in August of 2022, with the goal of “furthering global cryptocurrency adoption in a tangible manner”. The card allowed users in the country to pay for goods and services with cryptocurrency at Mastercard merchants.
