Payment giants Visa and Mastercard have both distanced themselves from Binance, the world’s largest cryptocurrency exchange. Visa has suspended issuing new Binance cards in Europe, while Mastercard will end its card partnership with Binance entirely in September.
The moves come as Binance faces increased scrutiny from regulators around the world. In the United States, the Securities and Exchange Commission (SEC) is investigating Binance for possible securities violations. The UK’s Financial Conduct Authority (FCA) has also warned Binance that it is not authorized to operate in the UK.
Binance has said that it is committed to complying with all applicable regulations. However, the company’s troubles have led to some investors questioning its future.
The suspension of new Binance cards by Visa is a blow to the exchange. The cards allow users to spend their cryptocurrency at merchants that accept Visa. The cards were also seen as a way to make cryptocurrency more mainstream.
The end of the Mastercard partnership is even more significant. Mastercard is the world’s largest payment network, and its decision to cut ties with Binance is a major setback for the exchange.
It remains to be seen how Binance will weather the storm. The company has said that it is exploring other ways to allow users to spend their cryptocurrency. However, it is clear that the company’s future is uncertain.
Why did Visa and Mastercard suspend their partnerships with Binance?
There are a few possible reasons why Visa and Mastercard have suspended their partnerships with Binance. One possibility is that they are concerned about the regulatory risks associated with Binance. As mentioned above, Binance is facing increased scrutiny from regulators around the world. This could make it difficult for Visa and Mastercard to continue working with the exchange without running afoul of the law.
Another possibility is that Visa and Mastercard are concerned about the reputational risks associated with Binance. Binance has been criticized for its lax security practices and its role in facilitating money laundering. This could damage the reputations of Visa and Mastercard if they were to continue working with the exchange.
Finally, it is also possible that Visa and Mastercard are simply trying to distance themselves from the cryptocurrency industry as a whole. The cryptocurrency market is still relatively young and volatile, and it is possible that Visa and Mastercard are concerned about the risks associated with this market.
What does this mean for Binance?
The suspension of the Binance cards by Visa and Mastercard is a major setback for the exchange. The cards were a popular way for users to spend their cryptocurrency, and their loss will make it more difficult for Binance to attract new users.
The end of the Mastercard partnership is also a major blow to Binance. Mastercard is the world’s largest payment network, and its decision to cut ties with Binance will make it more difficult for the exchange to process payments.
It remains to be seen how Binance will weather this storm. The company has said that it is exploring other ways to allow users to spend their cryptocurrency. However, it is clear that the company’s future is uncertain