DMR News

Advancing Digital Conversations

Binance Reinstates Cryptocurrency Purchases via Mastercard

ByDayne Lee

Jun 9, 2024
Binance Reinstates Cryptocurrency Purchases via Mastercard

Binance Reinstates Cryptocurrency Purchases via Mastercard

Binance, the world’s largest cryptocurrency exchange, has announced the reinstatement of cryptocurrency purchases using Mastercard debit and credit cards. This move comes as part of Binance’s efforts to facilitate smooth and seamless transactions for its global user base.

Mastercard Purchases Resumed

In a June 6 post on X, Binance confirmed that it has reenabled the “buy crypto” options via Mastercard on its platform. Users can now make one-time purchases up to 5,000 euros (approximately $5,440) for euro-based transactions and up to $20,000 for U.S. dollar-based purchases. This resumption allows Binance customers to use Mastercard for bank transfers to buy cryptocurrencies directly.

A spokesperson for Binance highlighted the exchange’s commitment to regulatory compliance and operational excellence:

“Binance continues to invest heavily to ensure it meets the highest standards of compliance. Following an extensive review of the rigorous controls and processes that Binance put into place, Mastercard made the decision to allow Binance-related purchases on its network.”

Binance’s decision to reinstate Mastercard purchases is part of a broader strategy to enhance its fiat payment capabilities. The exchange plans to add more regulated fiat payment providers in the future, making crypto purchases even more intuitive and accessible for users worldwide.

Payment MethodMaximum Purchase Limit
Mastercard (Euro-based)5,000 euros (approx. $5,440)
Mastercard (USD-based)$20,000

Changes in Payment Services and Partnerships

The reintroduction of Mastercard services follows significant changes in Binance’s payment partnerships over the past year. On December 20, 2023, Binance ceased its Visa debit card services in the European Economic Area (EEA). These Visa cards allowed users to convert crypto into local currencies for everyday purchases.

The suspension of Visa services came shortly after Binance restored euro deposits and withdrawals, which had been disrupted for a month due to the withdrawal of support by payment processor Paysafe. Additionally, in September, Mastercard ended its partnership with Binance in several countries, including Argentina, Brazil, Colombia, and Bahrain.

Binance’s decision to reenable Mastercard transactions may signal a positive turn in its ongoing regulatory challenges. The exchange has faced significant scrutiny from U.S. regulators, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

In June 2023, the SEC filed 13 charges against Binance, accusing the platform of misappropriating customer funds and conducting unregistered securities offerings. This followed a similar lawsuit from the CFTC, which charged Binance with failing to register and violating multiple regulatory guidelines.

Despite these allegations, Binance has continued to maintain its operational integrity. There has been no evidence of user fund misappropriation, although the company faced accusations of violating Anti-Money Laundering (AML) laws. Binance agreed to pay a $4.3 billion settlement, one of the largest criminal fines in history, as part of resolving these issues.

Regulatory ActionsDetails
SEC Charges13 charges, including misappropriation of funds and unregistered offerings
CFTC LawsuitCharges of failing to register and breaking regulatory guidelines
AML ViolationsSettlement of $4.3 billion for AML law violations

Leadership Changes and Future Plans

As part of the settlement, Binance’s founder, Changpeng Zhao, also known as “CZ,” stepped down from his role as CEO. In April, Zhao was sentenced to four months in prison by Judge Richard Jones in the U.S. District Court for the Western District of Washington. Zhao’s charges were related to money laundering activities at Binance.

Starting his sentence in June at a low-security federal prison in Lompoc, California, Zhao has expressed intentions to continue his involvement in the cryptocurrency space after his release.

Leadership ChangeDetails
Changpeng Zhao (CZ)Stepped down as CEO and began a four-month prison sentence

The reinstatement of Mastercard-based cryptocurrency purchases reflects Binance’s ongoing commitment to expanding its service offerings while navigating regulatory landscapes. As the exchange continues to address its legal challenges and adapt to regulatory requirements, it remains focused on providing a secure and user-friendly platform for its global customer base.

Looking forward, Binance’s strategic moves to enhance fiat payment options and integrate more regulated providers will likely bolster its position in the rapidly evolving cryptocurrency market. These efforts aim to ensure that Binance can offer comprehensive and compliant financial services to its users, reinforcing its role as a leader in the crypto industry.

Featured image credit: via Unsplash

Dayne Lee

With a foundation in financial day trading, I transitioned to my current role as an editor, where I prioritize accuracy and reader engagement in our content. I excel in collaborating with writers to ensure top-quality news coverage. This shift from finance to journalism has been both challenging and rewarding, driving my commitment to editorial excellence.

Leave a Reply

Your email address will not be published. Required fields are marked *