XRP, SHIB, and other tokens are again available on Binance for Mastercard users
In a significant turn of events, the financial services powerhouse Mastercard has reportedly reinstated its services for Binance clientele.
Previously, in August, Mastercard, recognized as the second-largest payments network globally, discontinued its services for the world's top cryptocurrency exchange by trade volume. This decision was in alignment with the escalating legal predicaments facing Binance. In June 2023, the exchange found itself in legal hot waters when the U.S. Securities and Exchange Commission initiated legal proceedings against it, alleging its operation as an unregistered trading platform in the U.S. and its contravention of U.S. securities regulations.
The legal entanglements for Binance culminated in late 2023 when the exchange had to agree to a $4.3 billion settlement with the U.S. Department of Justice (DOJ), after admitting to its role in facilitating widespread money laundering activities. Changpeng Zhao, who had been at the helm as CEO, stepped down in the aftermath and subsequently received a four-month prison sentence.
In efforts to refurbish Binance's sullied reputation, the new head of the exchange, Richard Teng, has been vocally prioritizing regulatory adherence.
The decision by Mastercard to re-engage with Binance was informed by the exchange's proactive measures towards implementing stronger regulatory controls. Nonetheless, the continuation of purchases via Mastercard hinges on ongoing assessments by the payment giant.
Mastercard's curiosity about cryptocurrency, particularly its potential to boost payment efficiencies through blockchain technology, has been ongoing.
By 2018, Mastercard positioned itself among the forefront of corporations with a significant number of blockchain inventions, sharing the spotlight with giants like IBM and Alibaba. The year 2020 saw it experimenting with the practicality of using stablecoins for transactions in collaboration with Circle. Come 2022, Mastercard strengthened its foothold in the crypto space by partnering with the crypto payment platform MoonPay, enabling its users to delve into the world of non-fungible tokens.
