It is now possible for Mastercard users to buy a slew of digital currencies, such as Bitcoin, XRP, and Shiba Inu (SHIB), once again.
In a significant shift, MasterCard has resumed allowing users to make cryptocurrency purchases on Binance. This decision follows a suspension which began in August 2023.
MasterCard stopped providing its services to Binance users because of a lawsuit that challenged the exchange’s ability to operate in the U.S.
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In June 2023, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance, alleging that the exchange operated as an unregistered securities platform within the U.S. These accusations further intensified scrutiny surrounding Binance’s compliance with U.S. regulations.
Adding to its woes, Binance reached a $4.3 billion settlement with the U.S. Department of Justice (DOJ) in November 2023 to resolve allegations of money laundering that had tarnished the exchange’s reputation. The exchange’s former CEO, Changpeng Zhao, also stepped down and received a prison sentence for his role in these issues.
Renewed Focus on Regulatory Compliance
Following these events, Binance’s new CEO, Richard Teng, emphasized a commitment to stricter regulatory compliance. This focus on meeting regulatory standards appears to have been a key factor in Masteracard’s decision to resume support.
MasterCard’s renewed partnership with Binance is conditional and hinges on the exchange’s continued adherence to enhanced controls. However, MasterCard is showing some caution.
According to the report, MasterCard has only resumed payment operations, withdrawals and other services will come later. MasterCard also specified that Binance’s renewed services are contingent on ongoing reviews. This shows MasterCard’s ongoing commitment to protecting its users.
MasterCard’s Interest in Blockchain Technology
Despite Binance’s temporary suspension, MasterCard has consistently demonstrated a strong interest in blockchain technology. The company has actively explored the potential of blockchain to improve payment systems.
For instance, MasterCard ranked among the top patent filers for blockchain technology in 2018, alongside industry giants like IBM and Alibaba.
Additionally, MasterCard collaborated with Circle in 2020 to test the feasibility of using stablecoins, a type of cryptocurrency pegged to traditional assets, for payments. MasterCard also recently acknowledged Ripple’s innovative use of blockchain technology for XRP-based remittance.
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MasterCard’s renewed partnership with Binance signifies a potential turning point for the cryptocurrency exchange. After a year of major trouble, Binance has emerged stronger. The renewed partnership also suggests a willingness within the financial services industry to collaborate with cryptocurrency exchanges that comply with regulations.
This is another reason the crypto industry needs proper regulation within the U.S., not the SEC’s problematic regulation-by-enforcement approach.
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