Binance, a leading cryptocurrency exchange, has announced the reinstatement of Mastercard payments for crypto purchases on its platform. This move allows users to make cryptocurrency purchases using their Mastercard, although withdrawals are not yet available. The restoration of Mastercard services comes after the payment provider reconsidered its position on Binance, having previously halted services in August 2023 due to regulatory challenges faced by the exchange.
According to a Binance spokesperson, Mastercard’s decision followed a thorough review of the enhanced compliance controls implemented by Binance. The spokesperson noted that while purchases are now permitted, other services, including withdrawals, will be introduced in the future.
Mastercard confirmed the service resumption, emphasizing that the decision is based on ongoing reviews of Binance’s compliance efforts. The payment provider acknowledged the enhanced controls and processes Binance has put in place, which influenced their decision to allow crypto-related purchases on their network.
This development signifies a growing acceptance of cryptocurrency by traditional financial institutions. With the widespread use of Mastercard credit cards, many users will now be able to purchase and hold cryptocurrency on the Binance platform.
Meanwhile, Binance continues to navigate regulatory challenges worldwide. Despite the restored relationship with Mastercard, the exchange has faced numerous hurdles in achieving regulatory compliance. Recently, Binance reached a resolution with several U.S. regulatory bodies, including the Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC), recognizing its commitment to compliance.
However, the exchange has also faced setbacks, such as a $4.8 million fine imposed by Canadian regulators following money laundering allegations. Binance exited the Canadian market last year, citing strict regulations on stablecoins as the reason.