Mastercard users can now leverage their cards to buy crypto assets on Binance, including popular tokens Shiba Inu (SHIB) and XRP. This development follows Mastercard’s resumption of crypto purchases and deposits on the exchange’s platform.
Previously, in August 2023, Mastercard had paused these services due to heightened regulatory scrutiny surrounding Binance. During that period, the exchange faced legal challenges from U.S. regulators like the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).
The SEC in June 2023 had 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.
Notably, Binance and its former CEO, Changpeng Zhao (CZ), addressed these concerns by pleading guilty to violating the Bank Secrecy Act. This resolution involved a hefty fine exceeding $4 billion, FinCEN registration, and the implementation of a robust anti-money laundering program.
With monumental success over these regulatory hurdles, Binance has regained Mastercard’s trust. A spokesperson for the exchange confirmed that Mastercard lifted the ban on crypto purchases after meticulously reviewing the exchange’s implemented controls. While future Mastercard withdrawals are planned, a specific timeline hasn’t been announced.
A Mastercard representative echoed this sentiment, highlighting the resumption based on Binance’s control enhancements. However, they emphasized that ongoing assessments could influence the current status.
Mastercard has consistently demonstrated a positive attitude towards cryptocurrencies, showcasing its interest in this burgeoning asset class. Just recently, in March 2024, Mastercard acknowledged Ripple, a blockchain company specializing in payments, as a leader in shaping cross-border remittance solutions across Latin America.
This endorsement was further solidified by a partnership between Mastercard and Ripple for their central bank digital currency (CBDC) initiative. Beyond Ripple, Mastercard has fostered collaborations with prominent crypto-related entities, including Consensys and the Indonesian exchange Fasset.
This renewed partnership offers several potential benefits. For users, it provides a convenient and familiar method to purchase cryptocurrencies using Mastercard debit and credit cards. For Binance, it expands its payment options and caters to a broader audience. From a broader industry perspective, this collaboration fosters legitimacy and trust in the crypto space, potentially accelerating its mainstream acceptance.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Times Tabloid is not responsible for any financial losses.
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