The financial landscape experienced a seismic shift recently as Mastercard and Binance part ways, marking the end of their collaborative crypto card program. This significant decision has impacted card payment services across four key regions.
Impact of the Breakup
Binance, known for its position as the largest crypto exchange in terms of trade volume, appears to be bearing the brunt of increasing regulatory scrutiny from Western regulators. The latest in a series of developments is the announcement from Mastercard, a top-tier payment service provider, that it is severing ties with the exchange. The specific fallout of this decision is the termination of support for four crypto card programs.
- Users in Argentina, Brazil, Bahrain, and Columbia will no longer be able to use their cards for payments.
- Card services in these regions have already been suspended or restricted by Binance.
- The card program is projected to be completely terminated by 21 September 2023, as per Binance’s X accounts.
Mastercard’s Stance and Binance’s Response
The payments giant has not provided any specific reasons for its action. Mastercard has however, assured that this decision will not impact its partnerships with other crypto card programs, including those with leading American crypto exchange, Gemini.
On the other hand, Binance has been informing users via X, formerly Twitter, about the impending unavailability of their payment services. A notable tweet from Binance stated, “The Binance card will no longer be available for users in Latin America and the Middle East. Less than 1% of users in the markets mentioned are impacted by this.”
Effects on Binance Coin (BNB)
The recent development has not significantly affected Binance Coin [BNB]. CoinMarketCap reports that the crypto is still firmly holding its fourth position in the market with a market cap exceeding $33 billion. The coin’s price has remained stable, neither showing significant upward nor downward trends. However, a 3.99% downfall was noted in the seven-day chart, in line with the broader crypto market.
Despite the current bearish sentiment surrounding the coin, indicators hint at a potential reverse trend. This is evidenced by BNB’s Relative Strength Index (RSI) dipping below the neutral 50 mark on the one-hour chart, indicating a move towards the oversold region.
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