This month, the crypto community was shocked by institutional criticism of a leading crypto exchange company, Binance. While many banking organizations have banned their users from interacting with Binance, Visa and Mastercard insist that they still place their trust in Binance in the world.
With the growth and extensive services enjoyed, Binance has gained regulatory attention from various industry players. Starting with stern action from South Africa and Japan, the Binance crypto exchange was forced to cease its operations on the orders of the United Kingdom (UK) government.
According to the Financial Conduct Authority (FCA) in its announcement, "Binance Markets Limited is not permitted to carry out any lawful activities in the UK." Subsequently, the Financial Services Agency (FSA) which is Japan’s regulatory body has issued a warning against Binance’s crypto exchange. This warning was issued because interrogation found that Binance operated without a specific license as enshrined in the new guidelines.
While the exchange’s efforts to improve its compliance requirements continued with the hiring of new employees, some financial organizations stopped doing business with it.
It includes several European giants such as Barclays and Santander. However, US multinational financial services companies, Visa and Mastercard, have a better approach.
According to a Financial Times report, Visa is in talks with Binance to monitor developments related to the UK FCA. On the other hand, Mastercard also expressed the same tone especially about how Binance is trying to meet the requirements of the rules.
So far, no company plans to prevent their customers from transferring funds to Binance accounts using their cards.
