Visa and Mastercard are reducing their connections with Binance, a major crypto exchange, which isn’t unexpected due to Binance’s ongoing legal problems. Despite this, experts believe it’s unlikely to significantly harm the exchange’s market share.
Binance, known for the largest trading volume in the crypto realm, is confronting multiple charges from the U.S. Securities and Exchange Commission (SEC). These include running an unregistered business and misleading investors about risks. The U.S. Commodity Futures Trading Commission (CFTC) also charged Binance in May for “willful evasion” of U.S. laws.
The U.S. Department of Justice is additionally investigating Binance and reportedly considering fraud charges against the exchange.
With Binance’s legal hurdles, the decision by mainstream companies like Visa and Mastercard to distance themselves isn’t surprising, explained Dave Weisberger, CEO and co-founder of CoinRoutes. He stated, “It’s unsurprising that payment processors want to distance themselves from that.”
Binance Card’s Availability Change in Latin America and Middle East
Binance announced on the social media platform X (formerly Twitter) that its Binance Card won’t be accessible for users in Latin America and the Middle East. Despite this alteration, the impact on Binance’s market share isn’t likely to be significant due to its widespread global presence.
Hello there,
The Binance Card will no longer be available to users in Latin America and the Middle East. The product, like most debit cards, has been utilized by Binance’s users to pay for basic daily expenses but in this case, the cards are funded with crypto assets. Only a tiny…— Binance Customer Support (@BinanceHelpDesk) August 23, 2023
According to Dave Weisberger, CEO and co-founder of CoinRoutes, the effect on Binance is hard to gauge. He stated that since Binance remains a leading exchange in terms of liquidity, people will likely continue trading there.
Leo Mizuhara, CEO of Hashnote, shared a similar sentiment. He mentioned that the end of this partnership might not have a massive impact on the industry overall, as the shift away from Binance had been anticipated due to its issues with the CFTC and DOJ.
Mizuhara also noted that Mastercard’s distancing from Binance aligns with its growing involvement in the blockchain sector. Mastercard’s move is more about caution towards potential bad actors rather than a broader industry concern.
Both Visa and Mastercard have remained active in the blockchain industry, continuing their efforts even during the bear market and bankruptcy situations. They expressed their intentions to collaborate with industry partners to introduce payment programs to the markets.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
Join Cryptos Headlines Community
Follow Cryptos Headlines on Google News
Author
