A shocking development has unfolded in the cryptocurrency market, with Mastercard, the prominent global payment giant, reportedly terminating its cryptocurrency card partnership with Binance, a major player in the crypto exchange sector. This shift is expected to take effect next month.
As outlined in a report by Bloomberg, the conclusion of this partnership will result in the discontinuation of four cryptocurrency card programs in Argentina, Brazil, and Colombia, starting from September 22.
Although the report did not explicitly disclose the reasons behind this move, it strongly suggested that the decision could be attributed to the heightened regulatory scrutiny that Binance, the beleaguered crypto exchange, has been facing.
It’s worth noting that the termination of this program is isolated to these specific regions and will not impact any of Mastercard’s other cryptocurrency initiatives, as confirmed by the firms.
Mastercard will facilitate a seamless transition by supporting transactions during a designated wind-down period. This period will allow cardholders to convert their cryptocurrency holdings held within their Binance wallets.
The collaborative effort between Mastercard and Binance materialized in the form of prepaid crypto cards. These cards allowed users to conduct transactions using their cryptocurrency holdings, converting them to local fiat currencies for payment purposes.
Additionally, the report mentioned that, in addition to Mastercard, numerous other entities, including Visa, have ended their support from Binance due to the global regulatory challenges it is facing.
It’s worth noting that Binance has also taken the step to discontinue its other cryptocurrency debit card offerings in both Latin America and the Middle East, starting from the upcoming day.
Also Read: Binance Suspends Crypto Debit Cards in LATAM & Middle East
