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Mastercard and crypto exchange Binance will end their four crypto card programmes in Argentina, Brazil, Colombia and Bahrain as of September 22.
Mastercard will no longer offer Binance-branded cards in Latin America and the Middle East. The Binance cards allow users to make payments in traditional currencies, funded by their cryptocurrency holdings on the exchange.
“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,” Binance Customer Support said on Twitter.
“Only a tiny portion of our users (less than 1% of users in the markets mentioned) are impacted by this. Users of this product will have until September 21, 2023, when the card will no longer be available for use.”
“Binance accounts around the world are not affected. Where available, users can also shop with crypto and send crypto using Binance Pay, a contactless, borderless and secure cryptocurrency payment technology designed by Binance,” the company added.
Mastercard’s website also lists partnerships with crypto exchanges including Gemini. The decision will not impact any of Mastercard’s other crypto card programmes, the company spokesperson said.
Binance is facing legal and regulatory challenges. US regulators sued the crypto exchange and its CEO Changpeng Zhao in June for allegedly operating a “web of deception.” Binance has said it would defend itself “vigorously.”
Mastercard’s head of crypto and blockchain, Raj Dhamodharan, said in April that the company was seeking more partnerships with crypto firms. He declined to comment on Binance specifically, but said any card programme “goes through full due diligence” and is continuously monitored.
The exchange’s customer support account on X, formerly known as Twitter, said earlier that the Binance Card “will no longer be available to users in Latin America and the Middle East.”
