Mastercard, a worldwide giant in the payment industry, is reportedly making a surprising decision. The prominent payment firm is terminating its collaboration of crypto cards with the well-known crypto exchange Binance. This execution of this development will occur in the upcoming month, as reported by Bloomberg.
Mastercard and Binance’s Collaboration Reportedly Ends in the Latin American Region
It did not reveal the reason for behind this abrupt change. Nonetheless, the report implied that the possible reason might be the extended regulatory scrutiny against the troubled crypto exchange. Binance and Mastercard will terminate 4 crypto card-related projects in Colombia, Brazil, and Argentina beginning on the 22nd of September. This will begin on the 24th of August this year.
The decision to axe the project will have no impact on the rest of the crypto card projects under Mastercard. The payment platform reportedly asserted this. During the wind-down period, cardholders will have permission to put any holdings in Binance wallets. The prepaid crypto card service of Binance and Mastercard permits consumers to perform payments in regional fiat currencies. The crypto holdings in their possession will fund such payments.
The termination of the partnership takes place almost one year following the launch of a prepaid card for Argentinians. This project also started with a collaboration between both platforms. The reports point out that the renewed regulatory problems of Binance across the globe reportedly triggered the partnership’s end.
US SEC and CFTC File Lawsuits Against Binance for Alleged Law Infringement and Improper Registration
As reported previously, the crypto exchange and its chief executive officer Changpeng Zhao witnessed a lawsuit. The US Securities and Exchange Commission filed the respective case against them for alleged infringement of regional securities laws. Moreover, the US Commodity Futures Trading Commission additionally submitted a lawsuit against the company for not adequately registering with it.
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