Binance Shake-Up: Why Visa and Mastercard’s Move Might Affect You…

By CryptoTicker August 27, 2023 In Binance, Blockchain

Binance news: Visa, and Mastercard have become central characters in a new chapter that every crypto enthusiast must be aware of. As the sands shift, the potential for opportunity grows, and here’s why you simply can’t afford to miss out.

Recent Legal Woes for Binance

In the wake of legal challenges posed to Binance, especially within the U.S., it’s hardly a revelation that global payment leaders Visa and Mastercard are reconsidering their ties with the cryptocurrency exchange. Binance, the world’s top crypto exchange in terms of trading volume, finds itself in the crosshairs of the U.S. Securities and Exchange Commission (SEC). Among the allegations are charges of running an unregistered enterprise and potential misleading of investors regarding the inherent risks. Further compounding Binance’s legal troubles are accusations from the U.S. Commodity Futures Trading Commission (CFTC) from May, suggesting the exchange knowingly skirted U.S. regulations. Moreover, rumors swirl around the U.S. Department of Justice’s intentions to investigate potential fraud charges against Binance.

Decisions from Payment Powerhouses

Amidst this legal storm, Visa’s recent decision to halt the issuance of new co-branded cards with Binance for its European market makes sense. Mastercard, on the other hand, has publicly ended its association with Binance. While specific reasons remain undisclosed, a spokesperson remarked on the termination of four pilot programs in various markets, emphasizing that other crypto card programs remain unaffected. Meanwhile, Binance informed its user base via social media platform X (previously known as Twitter) about the unavailability of the Binance Card for users in regions like Latin America and the Middle East.

Impact on Binance and Broader Industry

Despite these setbacks, experts remain bullish about Binance retaining its market dominance. Dave Weisberger, the chief executive of CoinRoutes, underscored Binance’s continued leadership in liquidity. He commented that as long as Binance retains this advantage, traders would likely remain loyal.

For the larger crypto landscape, Leo Mizuhara, helming the CFTC-regulated digital asset platform Hashnote, doesn’t foresee this development significantly upsetting the apple cart. Given Binance’s prior disputes with regulatory bodies, many in the industry had already braced for such moves. Mizuhara also highlights Mastercard’s prudent decision, suggesting it’s in line with the credit card behemoth’s increased inclination towards blockchain, aiming to associate with credible actors in the industry.

Continued Interest in Blockchain

Despite these developments and market fluctuations, both Visa and Mastercard appear unwavering in their commitment to the blockchain realm. Their intent to collaborate with industry stakeholders and introduce innovative payment programs remains robust.

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