In a major change, payments giant Mastercard has reportedly resumed support for Binance users.
In a major change, payments giant Mastercard has reportedly resumed support for Binance users.
Last August, Mastercard, which has the second-largest payments network, pulled the plug on the largest cryptocurrency exchange by trading volume in the world. This coincided with Binance’s growing legal problems. In June 2023, the US Securities and Exchange Commission took Binance to court, accusing it of operating as an unlicensed trading platform in the US and violating US securities laws.
Tomiwabold Olajide
Binance’s legal troubles reached a tipping point in late 2023, when it was forced to shell out $4.3 billion to settle with the US Department of Justice (DOJ) after pleading guilty to allowing a rampant money laundering on the exchange. Changpeng Zhao, the exchange’s former chief executive, resigned and was later sentenced to four months behind bars.
In a bid to improve Binance’s tarnished image, Richard Teng, the exchange’s new boss, has repeatedly stressed the importance of regulatory compliance.
Mastercard’s U-turn came after the company evaluated Binance’s recent efforts to implement enhanced controls. However, the ability to make future purchases depends on future reviews by the credit card giant.
Alex DovbnyaMastercard has long been a company interested in cryptocurrencies, specifically focusing on the promise of blockchain technology to improve payments.
In 2018, it emerged as a top company for a series of blockchain-related patents, alongside names like IBM and Alibaba. In 2020, it began testing the viability of stablecoins for making payments in partnership with Circle. In 2022, it partnered with cryptocurrency payment app MoonPay so its customers could purchase non-fungible tokens.
