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MasterCard and Binance have decided to terminate their joint crypto-card initiatives in Bahrain, Argentina, Colombia, and Brazil, effective from September 22, 2023. The crypto-cards, which allowed users to execute payments in conventional currencies, were facilitated by their crypto reserves within the Binance exchange.
Speculations are rife that the decision to cease the partnership was influenced by Binance's recent confrontations with U.S. regulatory bodies - the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Earlier this year, both agencies filed lawsuits against Binance. The allegations encompassed a variety of issues including mingling user funds and operating without proper registration as a securities broker or exchange.
The SEC leveled 13 charges against Binance and its CEO, Changpeng Zhao, alleging that the company combined billions of dollars of customer funds with its own resources. These claims echo those made against the now insolvent crypto exchange FTX. Binance has refuted these allegations and recently filed a protective order against the SEC, arguing that the regulator's information requests were overly extensive and burdensome.
In Brazil, where MasterCard is ending its association with Binance's crypto card, authorities have also accused the company of engaging in a pyramid scheme.
Despite ending its collaboration with Binance, MasterCard continues to pursue other crypto-related products and services. It is actively involved in a central bank digital currency pilot alongside crypto enterprises such as Fireblocks, ConsenSys, and Ripple.
Visa (NYSE:V) also cut ties with Binance earlier this year, discontinuing its co-branded card collaboration in Europe in July. Additionally, Checkout.com reportedly ended its business relationship with Binance due to concerns about regulatory actions, jurisdictional orders, partner inquiries and apprehensions regarding the company's adherence to anti-money laundering, sanctions and compliance protocols.
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