Binance Re-Enables Card Payments

Binance has brought back the ability for its customers to buy cryptocurrencies using Visa and Mastercard. This comes after some regulatory issues temporarily halted these services. As of June 6, Binance announced that users can now make crypto purchases through bank transfers using Visa, Mastercard, and SEPA transfers, making transactions smoother for everyone.

Customers can now buy crypto on the Binance platform using Visa and Mastercard, with a maximum one-time purchase limit of up to 5,000 euros (approximately $5,440) for euro-based transactions and up to $20,000 for USD-based purchases. This service resumption marks an essential step for Binance, especially after the exchange shut down its Visa debit card services in the European Economic Area (EEA) late last year. Previously, the Binance Visa debit card allowed users to convert crypto in their Binance accounts into local currencies, enabling them to make purchases in stores and online using crypto.

The shutdown of Binance’s Visa card services was announced shortly after the exchange restored euro deposits and withdrawals. These had been unavailable for a month following the payment processor Paysafe’s decision to cease support for the exchange in 2023. By September of the same year, Mastercard also ended its partnership with Binance in several countries, including Argentina, Brazil, Colombia, and Bahrain.

These disruptions occurred amidst intense regulatory pressure from U.S. authorities. In June 2023, the United States Securities and Exchange Commission (SEC) filed 13 charges against Binance, accusing the exchange of misappropriating customer funds and conducting unregistered securities offerings. Earlier in March, the Commodity Futures Trading Commission (CFTC) also sued Binance for failing to register and for violating several of its guidelines.

Despite these regulatory challenges, the re-enabling of cryptocurrency purchases via Visa and Mastercard on Binance’s platform reflects the exchange’s determination to maintain its services and provide its customers with convenient options for buying crypto.

Binance's Steps Toward Resolving Regulatory Issues

Reintroducing Mastercard-based cryptocurrency purchases might indicate that Binance is navigating its regulatory troubles. After settling significant charges in the United States, there is hope that the worst of Binance’s regulatory woes are behind it. Although no evidence of user fund misappropriation was found, Binance faced charges for violating Anti-Money Laundering laws and agreed to pay a record-breaking $4.3 billion fine. As part of this settlement, Binance’s founder, Changpeng Zhao, stepped down from his role as CEO.

In April, Zhao, known as “CZ,” was sentenced to four months in prison by Judge Richard Jones in the U.S. District Court for the Western District of Washington for money laundering charges related to his cryptocurrency exchange. Additionally, he was ordered to pay a $50-million fine. Zhao began his prison sentence at a low-security federal prison in Lompoc, California, in early June. He plans to remain active in the crypto space following his release.