Visa, Mastercard Monitor Binance’s Regulatory Compliance as More Regulators Scrutinize the Crypto Exchange
Payments giants Visa and Mastercard say they are monitoring Binance’s regulatory compliance developments as more regulators come after the global crypto exchange for operating in their countries without authorization.
Visa, Mastercard Monitoring Binance’s Regulatory Troubles
Visa and Mastercard have not severed ties with cryptocurrency exchange Binance despite rising regulatory scrutiny. The two payments giants have not blocked Binance and cardholders can still use Visa and Mastercard to deposit funds into their accounts at the exchange.
Visa told the Financial Times Friday that it was “aware of the recent FCA statement regarding Binance,” noting that it was in “dialogue with Binance to monitor developments,” the publication conveyed. The Financial Conduct Authority (FCA) issued a warning on Binance stating that the exchange is not authorized to engage in regulated activities in the U.K.
Mastercard similarly told the publication:
We continue to monitor this situation, including how the exchanges fulfill their regulatory requirements.
Binance also offers a Visa-branded debit card that allows its users to spend funds from their crypto wallets at retailers. The Binance card, available in many European countries, is issued by Contis, a company that provides payments services in the EU through an e-money license from Lithuania’s central bank.
A number of banks in the U.K. have halted fund transfers to Binance following the warning by the FCA, including Barclays and Santander. Payment service providers Clear Junction and BCB Group have also reportedly ended relationships with Binance. The exchange has disabled sterling withdrawals through Faster Payments and euro deposits through SEPA bank transfers.
Binance CEO Changpeng Zhao said in an open letter last week that the company “has grown very quickly and we haven’t always got everything exactly right.” Claiming that his exchange has already “cleared multiple external anti-money laundering audits,” Zhao promised to take measures to improve regulatory compliance.
Besides the U.K., other countries that have issued warnings on Binance include the Cayman Islands, Japan, Thailand, Italy, and Lithuania.
What do you think about Binance’s troubles with a growing number of regulators? Let us know in the comments section below.