Binance Resumes Mastercard Payments For Crypto 

Mastercard reinstates Binance purchases following their August suspension amid legal challenges.

TakeAway Points:

  • Binance, which stopped accepting Mastercard payments for cryptocurrency purchases in August 2023 because of legal difficulties, has now resumed accepting them after tightened procedures.
  • Mastercard’s choice is contingent upon continued evaluations and is founded on Binance’s enhanced procedures.
  • Continuing to explore Web3 and self-custody wallets, Visa and Mastercard are showing interest in the cryptocurrency space.

Mastercard Restores Purchases on Binance

Users of Binance may now again use Mastercard to buy cryptocurrencies on the biggest exchange in the world, which is a huge milestone for the cryptocurrency sector. This occurs after to Mastercard’s August 2023 suspension of this feature due to Binance’s legal disputes in the United States. The choice to restart services was made after a thorough examination of Binance’s improved procedures and controls.

A Binance spokesperson confirmed the news via email, stating, “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. We look forward to adding support for further products, such as withdrawals, at a later date.” 

Mastercard also attested to the restoration, however they made clear that the status is still under further examination.

“Over the past several months, we have reviewed the enhanced controls and processes that Binance has put into place. It is based on those efforts that we have decided to allow Binance-related purchases on our network,” a Mastercard spokesperson said.

This action fits into a larger pattern in which major card networks, such as Mastercard and Visa, are getting more involved in the cryptocurrency field and investigating Web3 and self-custody wallet options.

Legal Difficulties and Adherence

Mastercard services have been restored at a moment when Binance is resolving several legal issues. The U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) brought many allegations against the exchange last year. Mastercard services had originally been suspended due to these legal obstacles.

The decision to bring back Mastercard services shows how much trust is placed in Binance’s enhanced compliance controls. Nonetheless, it appears that Mastercard will continue to closely examine the exchange’s compliance based on its ongoing evaluations. The market may perceive this event as evidence that Binance is moving forward in resolving regulatory concerns.

A Binance Executive gets Detained

Concurrently, a subset of US politicians have called on President Joe Biden to step in to support Tigran Gambaryan, the head of compliance at Binance, who has been held in detention in Nigeria for nearly three months. In a letter to President Biden, Secretary of State Antony Blinken, and Presidential Envoy for Hostage Affairs Roger D. Carstens, House Foreign Affairs Committee Chair Michael McCaul (R-Texas) and eleven other leaders urged authorities to handle Gambaryan’s case as a hostage situation.

“We fear for his life. Immediate action is essential to ensure his safety and preserve his life. We must act swiftly before it is too late,” the lawmakers stated. 

Gambaryan, an American citizen was arrested together with another executive from Binance, Nadeem Anjarwalla, after he was invited by Nigerian authorities to settle a disagreement with the cryptocurrency exchange. Anjarwalla was able to flee, but Gambaryan is still being held captive and is said to be unwell, probably from malaria. On May 24, he passed away in court in Nigeria.

To make matters more complicated, Binance and Gambaryan are also accused of money laundering and tax evasion in Nigeria.

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