Mastercard Ends Crypto Card Partnership with Binance
Global payments company Mastercard has decided to terminate its crypto card payment partnership with Binance. This means that all four crypto card programs in Argentina, Brazil, Colombia, and Bahrain will be discontinued by September 22.
Probable Cause for the Termination
- The reason behind the termination has not been disclosed, but it is believed to be related to the regulatory challenges Binance is facing in the United States.
- The US Securities and Exchange Commission (SEC) has sued Binance for allegedly violating US securities laws, including operating illegally in the US and listing unregistered securities.
- Cardano (ADA), Polygon (MATIC), and Solana (SOL) were among the tokens listed as unregistered securities in the SEC lawsuit.
- Binance plans to contest the allegations in court and believes that the SEC’s enforcement action is not the appropriate approach for the complex nature of the technology.
Impact of the SEC Lawsuit
- The SEC lawsuit had a negative impact on the broader crypto ecosystem, causing token prices to drop.
- The termination of the Mastercard crypto card partnership is seen as another consequence of the SEC lawsuit.
- The partnership between Mastercard and Binance was launched in Brazil just seven months ago.
Hot Take
The termination of the Mastercard crypto card partnership with Binance highlights the regulatory challenges faced by crypto companies. The SEC lawsuit has had a significant impact on Binance’s operations and partnerships. This event serves as a reminder that regulatory compliance is crucial in the crypto industry to ensure sustainable growth and partnerships with traditional financial institutions.
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