Mastercard and Visa, the two major card issuers, terminate partnership with Binance, further isolating Binance from traditional financial channels.

The two major credit card issuers, Mastercard and Visa Inc, have decided to exit their credit card partnership with the cryptocurrency exchange Binance.

Mastercard Terminates Partnership but Remains Active in the Crypto Space

According to a report from Bloomberg, Mastercard will terminate its co-branded card partnership with Binance in Argentina, Brazil, Colombia, and Bahrain on September 22, affecting less than 1% of Binance's customers.

Mastercard also stated that this termination does not affect other crypto cards, and the buffer period is set up to allow cardholders time to convert assets in their Binance wallets.

According to Mastercard's website, it has 3 billion cards circulating globally and has been actively expanding into the crypto space in recent years, partnering with exchanges like Gemini and Coinbase.

Furthermore, Mastercard previously announced plans to venture into bank token deposits and intends to expand into CBDC and stablecoin services in the future. Its disclosed CBDC partners include prominent names like Ripple and Consensys.

Binance Isolated from Traditional Finance

Visa, on the other hand, stopped issuing new co-branded cards with Binance in Europe since July. The moves by Visa and Mastercard represent the latest blows to Binance's expansion into mainstream markets, further isolating Binance from traditional financial systems.

The Binance card was introduced to make it easier for the general public to use cryptocurrencies, allowing consumers from cryptocurrency exchanges to pay for basic daily expenses with funds from their crypto assets. It also facilitates fiat currency deposits and withdrawals. Binance's Visa card was launched in September 2020.

In February, Binance had its connections with the U.S. banking system cut off, and in May, it lost the ability to accept transfers from some Australian banks. Recently, payment processor Checkout.com also terminated its partnership with Binance, leading to the discontinuation of Binance Connect, a service that allowed businesses to accept cryptocurrencies through Visa and Mastercard.

All these events seem to place Binance in a greater operational challenge as it faces increased scrutiny from global financial regulatory authorities.