JAKARTA - Mastercard, a leading payment company in the world, plans to end its relationship with Binance in presenting the payment of the Binance Card crypto card. Therefore, on September 22, the crypto card program in Argentina, Brazil, Colombia, and Bahrain will end.
Until now, Binance has not made any comments regarding this. However, early Thursday, August 24, its subscriber support account on Twitter (now known as X) posted that the Binance Card "will no longer be available to users in Latin America and the Middle East."
Unfortunately, the reason behind this sudden decision was not disclosed. Even so, MasterCard's actions are suspected to be related to the regulatory issues that Binance is facing in the United States.
According to a Coingape report, the US Securities and Exchange Commission (SEC) sued this leading exchange in June for alleged violations of US Securities laws. About 13 charges were imposed on Binance and Chief Executive Officer (CEO) Changpeng 'CZ' Zhao.
The cryptocurrency exchange is suspected of operating illegally in the United States, mishandling customer deposits, misleading regulators and investors, and registering unregistered securities.
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Cardano (ADA), Polygon (MATIC) and Solana (SOL) are some of the tokens listed as securities that are not registered in this case. At first CZ admitted that he had not seen the official complaint. However, the exchange then responded to regulators, stating that they were disappointed with the SEC but would definitely oppose the allegations in court.
According to Binance, US regulators opted for law enforcement and litigation instead of choosing a wise and nuanced approach required by dynamic and complex technological properties.
"Although we take the SEC's accusations seriously, it should not be the subject of SEC enforcement actions, let alone in a state of emergency. We intend to maintain our platform with great enthusiasm," Binance explained.
SEC's lawsuit had a bad impact on Binance
At that time, law enforcement measures were detrimental to the overall crypto ecosystem. The price of tokens began to drop drastically. As can be seen at the end of Mastercard's crypto card relationship, the effect of this SEC lawsuit has not been lost.
This news is important because it comes seven months after the deal was first available in Brazil. Mastercard and Binance did not say that crypto cards would be present in the Latin American country until January.
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