Mastercard Resumes Partnership with Binance

Payment system Mastercard has reinstated agreements with Binance regarding payments and deposits following the resolution of issues with US regulators, reports CoinDesk.

Withdrawals and other functions will be available later, the company clarified.

“After a comprehensive review of the stringent controls and processes implemented by Binance, Mastercard has decided to allow platform-related purchases within its network,” commented a representative of the exchange.

The partnership was severed in September 2023 under pressure from American regulatory bodies. At the time, Mastercard declined to comment on the decision.

Six months prior, the CFTC filed a civil lawsuit against Binance. According to the agency, the exchange violated derivatives trading rules by operating without proper registration.

Three months later, the SEC brought charges against the firm and its head, Changpeng Zhao. The commission filed a total of 13 charges.

Amid regulatory pressure in the US, the company faced challenges in Europe. Binance withdrew license applications in the UK, Austria, and Cyprus, and announced its exit from the Netherlands.

The Belgian Financial Services and Markets Authority ordered the exchange to cease operations. Media reported on an investigation by authorities into the platform’s branch in France.

Following the March resolution of Signature Bank and the liquidation of Silvergate Bank in the same month, the company’s US division encountered difficulties with banking services. The firm held dollar deposits of clients in these institutions.

In May, Binance suspended account top-ups for Australian users in local currency due to actions by a service provider. The organization also halted deposits and withdrawals in British pounds following Paysafe’s decision to cease cooperation.

The firm announced a complete cessation of services with Binance from September. The digital payments platform Checkout.com also announced its withdrawal from collaboration with the exchange.

The company decided to close the Binance Connect (Bifinity) service, which had been operational since March 2022. The product allowed merchants to accept cryptocurrency payments through Visa and Mastercard systems.

The Binance Card initiative was launched by the exchange as part of a broader dissemination of digital assets. It enabled users to pay for goods and services in cryptocurrencies via payment cards.

In April 2024, a federal court in Seattle sentenced Zhao to four months in prison on charges of money laundering and other illegal activities.

In November 2023, CZ pleaded guilty to failing to maintain an effective anti-money laundering program at Binance as the head of the company. As part of an agreement with the US Department of Justice, he agreed to pay a $50 million fine and step down as CEO.

The settlement amount for the organization was $4.3 billion.