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Home » Regulatory pressure on Binance forced the withdrawal of Visa and Mastercard cards

Regulatory pressure on Binance forced the withdrawal of Visa and Mastercard cards

Important facts:
  • Both companies will be collaborating with Binance in Latin America until September 21.

  • According to the exchange, less than 1% of users will be affected.

According to a Bloomberg report, regulatory pressures and lawsuits faced by Bitcoin (BTC) and cryptocurrency exchange Binance in different parts of the world appear to be the reasons that prompted Visa and Mastercard to end their relationship with the one led by Changpeng Zhao cancel company.

Visa stopped issuing new cards with Binance in Europe last July, while Mastercard will have the cards operational in other regions by September. revealed the media

Neither Visa nor Mastercard have confirmed whether the decision was based on legal hurdles the exchange is facing, as Bloomberg claims.

What is certain is that Binance Advertising that your Mastercard prepaid card is available in the Argentina, Colombia, Brazil, Middle East and North Africa regions It could be used until September 21st.

Binance clarified that user accounts is not affected by this decision “and they continue to operate regularly” as the change “only affects Binance card usage” and it accounts for “less than 1% of users”.

The move by Visa and Mastercard does not appear to have any negative impact on the stock market or the industry as it was “expected” that users and businesses would be affected They will leave Binance due to their legal issues, said Leo Mizuhara, CEO of Hashnote, a digital asset management platform at Coindesk.

Regulatory issues Binance is facing

The main lawsuit was brought by the US Securities and Exchange Commission (SEC), which allegedly accuses the exchange have violated federal securities regulationslast June, a fact reported by CriptoNoticias.

The company faces 13 separate allegations, including that Binance International increased its numbers in the altcoin market by “mingling” millions of dollars in investor assets with those of financial firms Merit Peak Limited and Sigma Chain, owned by Zhao.

Another Binance investigation would be led by the US Department of Justice for allegedly allowing the Russians evade the imposed sanctions for the American nation.

At the start of the Russia-Ukraine War, Joe Biden’s administration asked exchanges for help to prevent bitcoin and other cryptocurrencies from becoming an outlet for sanctioned Russian individuals and organizations.

The exchange is also encountering difficulties in countries such as France and Brazil. Paris prosecutors reported that the judiciary is investigating the company for allegedly failing to implement the KYC protocol and allowing serious money laundering.

The Paris prosecutor stated that the investigation against Binance was more than a year ago.

In Brazil, a parliamentary commission has launched an investigation into Binance as it needs to clarify its ties to some Brazilian companies accused of pyramid fraud.

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