Binance, Mastercard End Crypto Card Deal in Latin America

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According to recent reports, Mastercard will cease its association with the leading cryptocurrency exchange, Binance in September.

Binance, Mastercard Deal Ends on Sept. 22

In accordance with a Mastercard spokesperson, from September 22, Mastercard and Binance will stop offering all collaborated cryptocurrency card programs in Argentina, Brazil, and Colombia. 

Decision Applies to all Programs

The spokesperson added: “We had four pilot programs in market with them — Argentina, Brazil, Colombia and Bahrain. This decision applies to each of these Binance programs. There is no impact on any other crypto card program.”

Users can make payments in local fiat currencies using the Mastercard and Binance prepaid crypto card, which is financed from users’ cryptocurrency accounts in the trading platform. Members will still be able to transfer any assets in their Binance wallets throughout the wind-down duration.

Mastercard did not Reveal the Reason

Although Mastercard withheld the cause, the web publications like Bloomberg suggested it could have been related to growing regulatory monitoring on the troubled cryptocurrency exchange.

As TheCoinRise previously reported, the SEC filed more than a dozen allegations against the crypto firm, its US platform, and CEO Zhao in the District Court of Columbia on June 5. According to the SEC, the claims relate to a “blatant disregard” for the laws of the United States.

Additionally, the U.S. Commodity Futures Trading Commission brought legal action against the crypto exchange and accused Binance Holdings as well as CEO Changpeng Zhao “CZ” for breaking American laws.

Binance and Mastercard Partnered at the Start of the Year

It is noteworthy that Binance announced an agreement with global payment giant Mastercard at the start of the year to provide crypto prepaid card services to Brazilians. With the collaboration, Brazilians having legal national identity cards would be able to use cryptocurrencies as a form of payment for making purchases and paying bills.

The global financial services behemoth was chosen by the leading crypto exchange in August of last year to launch prepaid cryptocurrency cards in Argentina. As a result, Argentina was the first nation in Latin America to use Binance prepaid cards.

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