Decided to part ways
Credit card industry giant Mastercard reportedly has severed ties with cryptocurrency exchange Binance. Users in Argentina, Brazil, Bahrain, and Colombia were given access to a Mastercard-branded card as part of the agreement. Many in the cryptocurrency community see this as further evidence that Binance’s regulatory troubles of recent months pose a risk to its business relationships.
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Risk to its business relationships?
It appears that Mastercard made the choice, which is surprising given Binance’s emphasis on the lucrative South American regions. In January, Binance introduced a Mastercard Branded credit card, allowing its users to make purchases with cryptocurrencies anywhere that accepts Mastercard. Notably, Brazil was ranked as one of the top 10 worldwide markets by the broker in their official announcement.
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Argentina, which has triple-digit inflation and limited access to financial institutions, was also cited in the company’s launch announcement as having among of the highest crypto adoption rates in the world. Binance has promised to heavily advertise its platform throughout the South American nation. The firm found that in 2022, 50% of Brazilian consumers engaged in crypto-related activity, far higher than the global average of 41%.
The Future of Mastercard’s Crypto Plans Without Binance
Binance users should exercise caution in light of recent occurrences, even if doing so may stray too far into the realm of conspiracy theories. Some have speculated that Mastercard may not have been informed by US authorities of expected steps against Binance in advance.
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