According to a statement released on August 25, Mastercard has cut ties with Binance to offer crypto cards. The suspension of Binance’s crypto debit card services in the Middle East and Latin America, effective August 25, has complicated matters in that region.

A Mastercard representative said: “We had four pilot programs in the market with them – Argentina, Brazil, Colombia, and Bahrain. Starting September 22, we will discontinue all co-branded crypto card programs in Argentina, Brazil, and Colombia. Each of these Binance initiatives is affected by this ruling. There is no effect on any other crypto card program.”

This statement responded to a tweet about a Colombian Binance Card problem. Despite the suspension, Binance said that the adjustment will impact less than 1% of its user base in the targeted markets.

With the help of their crypto holdings on the exchange, users of the Mastercard and Binance prepaid crypto cards can make purchases in their home currency. Cardholders can convert any assets in their Binance wallets throughout the wind-down period.

Although Mastercard, the global payment giant, withheld the cause of the modification, internet reports like Bloomberg suggested it might be related to heightened regulatory scrutiny of the troubled cryptocurrency exchange.

The partnership between Binance and Mastercard ended almost a year after they started working together in August last year to introduce a prepaid card for Argentineans. Early in 2023, the companies expanded their collaboration with a second Latin American prepaid crypto card.

According to the article, Binance’s global regulatory concerns have caused the collaboration to dissolve.

Cuscal, Like Mastercard Has Cut Ties With Binance

Mastercard Has Cut Ties With Binance

While lately coming under increasing regulatory scrutiny globally, Australian banking partner Cuscal canceled its connection with Binance and stopped allowing Australian dollar deposits and withdrawals through PayID:

“Cuscal has strict compliance, onboarding, and due diligence requirements for our clients and any of their customers or merchants… Cuscal has terminated clients, their customers, and/or merchants who don’t adhere to our strict criteria and will do so in the future.”

Lawsuit Against Binance

As was previously reported, the US Securities and Exchange Commission filed a lawsuit against Binance and its CEO, Changpeng “CZ” Zhao, for allegedly breaking regional securities laws. The U.S. Commodity Futures Trading Commission also sued Binance for failing to register correctly with the derivatives regulator.

The American Department of Justice is looking into Binance for allowing Russians to utilize the exchange in defiance of American sanctions.

Mastercard Has Cut Ties With Binance

In light of Binance’s global regulatory concerns, the latest report claims that Mastercard is not the only company that has distanced itself from Binance. According to Binance, Visa stopped issuing new co-branded cards with Binance in Europe in July.

Visa stopped issuing new co-branded cards with Binance in the European market: “Visa and Mastercard’s moves are the latest blow to Binance’s effort to push into the mainstream market, and come as it has found itself increasingly isolated from the traditional financial system.”