Binance faced significant regulatory pressure in the United States last year, with Visa and MasterCard subsequently ending their partnerships with Binance. However, Binance announced on the 6th that it has resumed allowing purchases of coins through Mastercard and Visa cards, signaling a possible end to regulatory troubles in the US.
After facing multiple accusations from the US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC) last year, the two payment giants Visa and MasterCard terminated their partnerships with Binance. Visa stopped issuing new co-branded cards with Binance in Europe since July of last year, while MasterCard completely ended their financial card partnership with Binance in September of last year.
Binance Resumes Mastercard and Visa Card Purchases
However, it appears that Binance has now resumed its cryptocurrency payment services through Mastercard and Visa cards. According to a statement from Binance on the 6th:
As reported by Coindesk, a Binance spokesperson confirmed that MasterCard has resumed allowing purchases on Binance. A MasterCard spokesperson also confirmed the resumption of services.
Currently on the Binance official website, the option to purchase cryptocurrencies through Mastercard and Visa cards has been reactivated. When priced in US dollars, users can purchase cryptocurrencies worth up to $20,000 at a time.
Has the Regulatory Trouble in the US Ended?
The resumption of purchasing cryptocurrencies through Mastercard and Visa cards may signal the end of regulatory troubles for Binance in the US. In November last year, Binance reached a plea agreement with the US Department of Justice and the CFTC, paying a hefty $4.3 billion fine, agreeing to strengthen compliance measures, and CEO Zhao Changpeng stepping down, replaced by Richard Teng.
Zhao Changpeng, who admitted to violating US anti-money laundering laws, was sentenced to 4 months in prison in May and has reported to a federal prison in California. He is expected to be released in October this year, starting a new chapter in his life.
Extended Reading:
Zhao Changpeng CZ has been imprisoned and will serve a four-month sentence in a federal prison in California.