Payment processing giants Visa and Mastercard are reducing their ties with cryptocurrency exchange Binance, but it may not impact Binance’s market share, believes experts.
“This development is probably not that big of a deal in terms of the impact on the industry, as people and organizations pulling away from Binance was already pretty much expected given its issues with the CFTC and DOJ,” Coindesk quoted Mizuhara in its report.
A Binance spokesperson revealed that Visa stopped issuing Binance cards in Europe in July. Mastercard will terminate its entire card partnership with Binance in September. A Bloomberg report on Thursday said neither of these two payments companies have shared any reasons for these developments.
Mastercard had four crypto card pilot programs with Binance. These were in Argentina, Brazil, Bahrain, and Colombia. Mastercard will stop working on Binance’s card programs in all four countries.
The reason for Visa and Mastercard to distance from Binance is believed to be the cases filed against it by US regulators – the Securities and Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC).
The US regulators have charged Binance with operating in the country without proper registration, misleading investors about the risks, and wilful evasion.
However, the move by mainstream payments companies Visa and Mastercard may not impact Binance’s market share.
“It’s difficult to assess the impact of this on Binance, which is still a leading exchange from a liquidity point of view. Until that changes, people will continue to trade there,” Coindesk quoted Dave Weisberger, CEO and co-founder of CoinRoutes.