Mastercard has decided to end its partnership with cryptocurrency exchange Binance Holdings, impacting the co-branded card programs the two companies had in Argentina, Brazil, Colombia, and Bahrain. This termination is set to take effect on September 22. Mastercard confirmed the decision and stated that cardholders will have a period to convert their holdings in their Binance wallets. A Binance spokesperson also confirmed the news, clarifying that only a small percentage of users would be affected.
The reason behind Mastercard's decision hasn't been disclosed, but it comes during a time when Binance is facing legal and regulatory challenges. The exchange is being sued by the U.S. Securities and Exchange Commission (SEC) for alleged securities rule violations and by the Commodity Futures Trading Commission (CFTC) for allegedly allowing American users to access the platform without adhering to necessary regulations. Binance has strongly contested these allegations.
The co-branded card programs were intended to promote the use of cryptocurrencies in everyday transactions, allowing users to spend their crypto assets for daily expenses. With the partnership ending, cardholders will need to convert their Binance wallet holdings. Binance had partnered with Mastercard to launch its Binance Card in Argentina in August 2022, enabling Binance users to make purchases and pay bills with crypto at Mastercard merchants in the country.
