Visa has stopped issuing new co-branded cards with Binance in Europe, while Mastercard has confirmed that it has ended its pilot programs with Binance in Argentina, Brazil, Colombia and Bahrain.
Dave Weisberger, CEO and co-founder of CoinRoutes, a crypto trading platform, said that Visa and Mastercard’s decision is not surprising given the legal issues Binance is facing. “It’s not surprising that payment processors want to distance themselves from this,” he said.
Weisberger said that despite this move by the payment giants, it is unlikely that Binance will lose market share as it still remains the most liquid and popular crypto exchange in the world. “The impact of this on Binance, which is still a leading exchange in terms of liquidity, is difficult to assess,” he said. “People will continue to transact here until this situation changes,” he added.
Leo Mizuhara, CEO of Hashnote, a digital asset management platform regulated by the CFTC, said the end of the partnership between Visa and Mastercard and Binance is a big deal for the crypto industry as a whole, as it is expected given Binance’s legal issues. He said it wasn’t the issue:
“This development is probably not such a big deal in terms of its impact on the industry, as individuals and organizations moving away from Binance due to issues with the CFTC and the US Department of Justice are already expected.”
*Not investment advice.