Binance is once again the media spotlight for all the wrong reasons. It is considered one of the largest crypto exchange platforms in the world. There are many critiques of Binance; however, two global payment giants have recently endorsed the crypto trading platform. VISA and Mastercard customers are using Binance exchange since digital payment capability was enabled on the cards.
Both companies serve more than 1 billion active users in 200 countries. A new article published by Financial Times shares the comments from both companies. The article postulates that VISA and MasterCard management are updated about the recent persecution of Binance by regulatory agencies in several countries. It should be noted that Binance is facing regulatory concerns with regulatory bodies in more than six countries at present.
Many Private Companies Seize Business Relationships with Binance
VISA representatives told Financial Times that they are still having correspondence with the Binance team on the matter. Meanwhile, Mastercard claims that they are waiting for Binance to react to the ongoing regulatory unrest. The customers of VISA and MasterCard are at liberty to transfer funds from their bank accounts to any Binance project using the card services.
The ongoing regulatory pressure has prompted many smaller financial services enterprises to halt partnership contracts with Binance. United Kingdom banking institutions Barclays and Santander have already stopped their retail and institutional customers from transferring payments to Binance. A European payment service provider Clear Junction has also severed ties with the exchange.
The current regulatory pressure on Binance was started by UK regulatory agency Financial Conduct Authority (FCA). The FCA announced that the exchange is not listed as a crypto asset enterprise in the region. As soon as the news hit the media, several other regulatory agencies in other countries started to issue warnings about Binance under their respective jurisdiction. Things took a turn for the worst when USA regulator Financial Trade Commission (FTC) declared that it had received 760 complaints against Binance since 2020. Binance CEO Changpeng Zhao told the media that the company is working on increasing its compliance team. He further explained that advisory board members had increased the international compliance department by 500% since last year.