Binance had a financial partnership with Visa and Mastercard. But the crypto firm’s collaboration with these two payment services behemoths abruptly ended towards the end of August 2023. It was obvious that this situation would have significant repercussions on European crypto users.
Binance crypto services still available for two months
It has been almost two months to the day since financial giants Visa and Mastercard severed their partnership with Binance. A break that the crypto company decided, Friday, October 20, to implement by suspending its operations for European customers using the Visa debit card.
According to information communicated by the company, interruption of these operations However, it should not be abrupt. In fact, Binance has decided on a two-month moratorium (until December 20, 2023) before the definitive suspension of its European crypto services.
During this time, Binance users with Visa debit cards should therefore continue to carry out transactions made available by the exchange. Namely spending their crypto assets on their purchases of goods and services, among other things.
This decision marks a pivotal moment in the evolution of the crypto ecosystem. The latter facing remarkable evolutionary dynamics despite significant regulatory challenges.
A consequence of regulatory pressures?
It must be said that the choice of Visa and Mastercard to sever their ties with Binance reflected growing pressure. The latter being exercised by various regulatory authorities demanding careful examination of the legal compliance of the crypto platform.
In response, Binance has undertaken various adjustments to navigate this terrain. The interruption of its Visa debit card services in the European Economic Area is part of the company’s actions in this direction.
But Binance’s decision to discontinue its Visa debit card services in the European Economic Area actually goes much further. It reflects the difficult environment that crypto exchanges must navigate in the face of regulatory oversight.
This, in addition, in a sustained competitive context. We are, in fact, observing incursions by these traditional financial institutions into the crypto industry. This is especially true for a payment company like PayPal which recently launched its own stablecoin, PYUSD.
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