Mastercard (NYSE: MA) and digital currency exchange Binance will reportedly be terminating their four cryptocurrency card programs in the South American countries of Argentina, Brazil, and Colombia as well as Bahrain. This will be effective as of September 22, 2023, according to a representative for Mastercard (as reported by Reuters).
The Binance cards enable clients to complete transfers in traditional fiat currencies, which are funded by their virtual currency holdings via the exchange.
Mastercard’s official website also lists partnerships with digital asset exchanges such as Gemini. The latest move will not affect any of Mastercard’s other crypto card programs, the representative clarified.
At present, Binance is dealing with various legal and regulatory issues.
US regulatory authorities have sued the digital currency exchange and its CEO Changpeng Zhao “CZ” back in June for operating a “web of deception.”
Binance’s management has stated that it plans defend itself “vigorously” against such allegations.
Head of crypto and blockchain at Mastercard, Raj Dhamodharan, told Reuters back in April 2023 that the firm will be pursuing additional partnerships with crypto-focused businesses.
However, he did not comment on Binance in particular, but noted that any card program does go through “full due diligence” and is regularly evaluated.
As reported by Reuters, a Mastercard rep did not comment on why the Binance program was ending or even who decided to terminate the initiative.
Binance had not yet provided a detailed response to the matter. The firm’s customer support account on X stated this past Thursday that the Binance Card “will no longer be available to users in Latin America and the Middle East.”
Notably, this development has come shortly after Checkout.com decided to back out of its working relationship with Binance. Checkout.com said that regulatory issues had led to the firm making the decision to not work with Binance for now. Interestingly, Binance said it may look into taking legal action against Checkout.com for its decision to end the collaboration.