Binance Faces Setback as Visa and Mastercard Pare Back Ties
The decision by Visa and Mastercard to reduce their ties with Binance is not surprising considering the legal challenges the crypto exchange is currently facing. However, this move is unlikely to have a significant impact on Binance’s market share, given its global reach.
Key Points:
- Binance is facing charges from the SEC and the CFTC for operating an unregistered business and willful evasion of U.S. law.
- The U.S. Department of Justice is reportedly considering charging Binance for fraud.
- Visa has stopped issuing new co-branded cards with Binance in Europe.
- Mastercard has ended its partnerships with Binance in Argentina, Brazil, Colombia, and Bahrain.
- Binance’s market share is unlikely to be affected due to its leading position and liquidity.
According to Dave Weisberger, CEO of CoinRoutes, it is not surprising that payment processors want to distance themselves from Binance given its legal challenges. However, Binance’s extensive global footprint and leading position in terms of liquidity will likely ensure that people continue to trade on the platform.
Leo Mizuhara, CEO of Hashnote, believes that the end of the partnership between Visa and Mastercard with Binance is not a major concern for the industry as a whole. He suggests that institutions are being cautious about potential bad actors, and both Visa and Mastercard have shown interest in engaging with the blockchain industry.
Hot Take:
The decision by Visa and Mastercard to reduce ties with Binance may be a setback for the crypto exchange, but it is unlikely to have a significant impact on its market share. Binance’s global presence and leading position in terms of liquidity will likely continue to attract traders. The move by payment giants like Visa and Mastercard to distance themselves from Binance is a reflection of the company’s ongoing legal challenges. However, it may also be an indication of their caution when it comes to potential bad actors in the industry.
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