Due to increased regulatory scrutiny, Binance, a prominent cryptocurrency exchange, is experiencing a loss of business from both Mastercard and Visa.
Mastercard has decided to discontinue offering Binance-branded cards in Latin America and the Middle East. Similarly, Visa has terminated a similar card partnership with Binance in Europe.
Mastercard and Visa’s decisions represent a setback for Binance, which had been actively working to broaden its global presence and enhance its service offerings for its user base.
The corporation has encountered growing regulatory scrutiny on a global scale due to mounting concerns about the potential for money laundering and other illicit financial activities tied to cryptocurrencies.
In the United States, the Securities and Exchange Commission (SEC) has filed 13 charges against Binance and its CEO, Changpeng Zhao. These charges encompass allegations of commingling vast sums of customer funds with the company’s own resources, mirroring accusations previously leveled at the now-bankrupt cryptocurrency exchange, FTX.
Binance has steadfastly maintained its innocence, asserting a steadfast dedication to adhering to all relevant regulatory guidelines and rules.