Binance exchange reinstates Mastercard purchases on its platform

Mastercard is reportedly returning its payment services to the Binance crypto exchange platform. The exchange users can now make crypto purchases, but withdrawals using Mastercard are not allowed at this time. The Mastercard withdrawal services are expected much later. 

The Mastercard payment service is understood to have reconsidered its position on Binance operations. The payment service provider halted its services on the Binance exchange amid regulatory challenges faced by the crypto exchange platform. Since August 2023, the Mastercard payment service has been unavailable on the exchange.

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The Binance and Mastercard relationship has since been restored. Binance spokesperson shared that the exchange will resume Mastercard payment operations only for purchase purposes. Withdrawals and other options are yet to be available.

Mastercard resumes card payments on the exchange

One of the Binance spokespersons mentioned in an email that Mastercard decided to allow Binance-related purchases on its network. According to the spokesperson, Mastercard thoroughly reviewed the exchange’s commitment to compliance. Mastercard reportedly decided to accept crypto-related purchases after being satisfied with the processes and controls the exchange has implemented.

Crypto made easy—buy and sell with ease. 🤌

Use Mastercard, Visa, or SEPA, for bank transfers, and experience smooth transactions!

Try it now 👉🏻 https://t.co/shCZx59fi3 pic.twitter.com/05pzOC3sjh

— Binance (@binance) June 6, 2024

The spokesperson also added that they are looking forward to adding more Mastercard services to the platform. As of now, users can only make purchases. In the future, the exchange plans to provide other Mastercard services, such as withdrawals.

Mastercard responded to Coindesk and confirmed the service resumption. However, the Mastercard representative was keen to add that the process is still ongoing, and the current state of affairs is contingent on further reviews. In the response, the Mastercard representative said,

“Over the past several months, we have reviewed the enhanced controls and processes that Binance has put into place. It is based on those efforts that we have decided to allow Binance-related purchases on our network,…this status is contingent on ongoing reviews.”

The new developments continue to cement crypto’s acceptance by traditional finance. Considering the widespread popularity of Mastercard credit cards, many users will be able to buy and hold cryptocurrency on the crypto exchange.

Binance faces regulatory issues

Binance has experienced several regulatory issues. Since parting ways with Mastercard, the crypto exchange has undergone many hurdles to achieve regulatory compliance.

For instance, on November 21st, 2023, the exchange announced a resolution with U.S. Regulators. The crypto exchange announced that it reached a resolution with the U.S. Department of Justice (DOJ), the Office of Foreign Assets Control (OFAC), the Financial Crimes Enforcement Network (FinCEN), and the Commodity Futures Tradings Commission (CFTC).

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The resolution recognized the crypto exchange’s commitment to compliance and set a new chapter for the exchange’s transformation and alignment with registration, compliance, and governance requirements.

The Canadian regulators recently imposed a $4.8 million ban on Binance following money laundering claims. The exchange exited Canada last year, citing untenable regulation of stablecoins.

Cryptopolitan reporting by Collins J. Okoth