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Binance Resumes Mastercard Crypto Payments

Binance Lifts Ban on Mastercard Crypto Purchases.

by Isaac lane
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Binance, the world’s largest cryptocurrency exchange by trading volume, has re-activated cryptocurrency payments through Mastercard after a 10-month suspension. The move allows Mastercard users to purchase digital assets freely using their cards.

Reasons for Resumption

In August 2023, Mastercard deactivated crypto payments on Binance due to regulatory concerns, including legal issues the exchange was facing in the United States. Binance had been under scrutiny from the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC). Binance’s enhanced controls and internal structures have since undergone review by Mastercard, prompting the resumption of the service.

A Binance representative confirmed that Mastercard was the first card option to be re-activated on the platform. This decision comes after a series of evaluations by Mastercard regarding the exchange’s compliance and risk management practices.

Conditional Resumption

Mastercard’s re-activation of the crypto payments is conditional and subject to ongoing reviews of Binance’s internal controls. If Binance fails to meet the required standards, the sanction may be reintroduced. This conditional approach allows Mastercard to maintain oversight and ensure compliance with regulatory and industry standards.

Mastercard’s Innovation and Collaboration

Recently, Mastercard introduced its first P2P pilot transaction of the Mastercard Crypto Credential, offering an alternative for sending and receiving digital assets in various countries, including Argentina, Brazil, Chile, France, and Guatemala. Additionally, Mastercard has partnered with elite U.S. banks to test shared-ledger technology to facilitate the settlement of tokenized assets, including commercial bank money, Treasury securities, and investment-grade debt securities.

This collaboration aims to eliminate bottlenecks associated with cross-border transactions and streamline the settlement process for tokenized assets.

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