Dubaiuncovered

Binance, one of the world’s leading cryptocurrency exchanges, has faced recent setbacks as both Mastercard and Visa step back from card partnerships with the company. The move comes as Binance faces increasing scrutiny from US regulators for breaking securities rules. The US Securities and Exchange Commission (SEC) filed a lawsuit against Binance and its CEO, Changpeng Zhao, in June for their alleged violation of securities laws. Additionally, the Commodity Futures Trading Commission (CFTC) sued the company earlier this year for allowing American users access to the exchange in violation of regulatory rules.

In February, Binance was cut off from the US banking system, and in May, it lost the ability to accept certain bank transfers in Australia. These incidents have further intensified the challenges Binance is facing. Over the summer, the company also closed down Binance Connect, a service that allowed businesses to accept cryptocurrency payments through Visa and Mastercard.

Adding to the mounting concerns, Saulius Galatiltis, the CEO of payment processor Bifinity UAB, which serves as a gateway for fiat transactions by Binance customers, recently stepped down. This marks another departure among the many executive exits from Binance over the past three months.

Despite these difficulties, Binance continues to offer its Binance Visa Card to users in Europe, including France, Germany, and Spain. This crypto debit card allows users to convert and spend cryptocurrencies at over 60 million online and offline merchants worldwide.

While Binance’s card has gained popularity during the previous cryptocurrency boom, its regulatory challenges and the withdrawal of support from Mastercard and Visa pose significant obstacles for the company. Binance maintains that it disputes the allegations made by US regulators and remains committed to serving its customers.