Binance Restores Crypto Purchases With Mastercard and Visa
Binance, the world’s largest cryptocurrency exchange, has reinstated the ability for users to purchase cryptocurrencies using Mastercard and Visa following a significant suspension in 2023. This reactivation comes after a period of regulatory challenges in the United States. According to a Binance spokesperson, Mastercard’s decision to resume payment and deposit services comes after ‘a thorough review of the stringent controls and processes implemented by Binance.’
The withdrawal services via Mastercard are not yet available, but their reintroduction is planned for the future. Last year, Binance ended its collaboration with card networks amid multiple accusations from the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC).
The reinstatement of cryptocurrency purchase options via Visa and Mastercard marks a significant milestone, with transaction limits set at €5,000 for purchases in euros and $20,000 for purchases in US dollars.
Regulatory Challenges and Future Prospects
In late 2023, Binance halted Visa card services in the European Economic Area due to growing regulatory issues, particularly after payment processor Paysafe ceased working with the exchange. Furthermore, Mastercard ended its partnership with Binance in several countries, including Argentina and Brazil, following SEC allegations involving misappropriation of client funds and unregistered securities offerings.
CZ and Legal Consequences
Despite no evidence of user fund misappropriation, Binance faced accusations of violating anti-money laundering laws and reached an agreement to pay a record-breaking penalty of $4.3 billion. Changpeng Zhao, founder of Binance, resigned as CEO as part of this agreement. In April, CZ was sentenced to four months in prison for money laundering-related charges on his cryptocurrency exchange platform. He was also fined $50 million and began serving his sentence in June at the minimum-security Federal Correctional Institution in Lompoc, California.
These developments suggest that the resumption of payment services could signify the temporary end of Binance’s regulatory troubles, allowing for a wider expansion of its operations and a recovery of confidence among institutional and individual users.
