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Mastercard returns to partnership with Binance

Payment system Mastercard has restored agreements with Binance regarding payments and deposits after resolving problems with US regulators. Writes about this CoinDesk.

Withdrawal and other functions will be available later, the company clarified.

“After a comprehensive review of the strict controls and processes put in place by Binance, Mastercard has made the decision to allow platform-related purchases on its network,” a spokesperson for the exchange commented.

The partnership broke down in September 2023 under pressure from American regulatory authorities. Then Mastercard refused to comment on the decision.

Six months before CFTC filed a civil lawsuit against Binance. According to the department, the exchange violated the rules for trading derivatives by operating without appropriate registration.

Three months later, Zhao made claims against the company and its head Changpeng SEC. The commission brought a total of 13 charges.

Amid regulatory pressure on the company in the US, the organization faced problems in Europe. Binance withdrew applications for licenses in the UK, Austria, Cyprus and announced its withdrawal from the Netherlands.

The Belgian Financial Services and Markets Authority ordered the exchange to cease operations. The media reported an investigation by the authorities into the platform’s branch in France.

Following the bailout of Signature Bank in March and the liquidation of Silvergate Bank the same month, the company’s U.S. unit experienced banking difficulties. The firm held client dollar deposits at these institutions.

In May, Binance suspended local currency funding for Australian users due to the service provider’s actions. The organization has also stopped depositing and withdrawing funds in British pounds sterling as a result of Paysafe’s refusal to cooperate.

The firm announced that it will completely stop servicing Binance from September. Digital payments platform Checkout.com also announced its withdrawal from cooperation with the exchange.

The latter decided to close the Binance Connect (Bifinity) service, which had been operating since March 2022. The product allowed merchants to accept cryptocurrency payments through Visa and Mastercard systems.

The Binance Card initiative was launched by the exchange as part of its wider adoption of digital assets. It allowed users to pay for goods and services in cryptocurrencies through payment cards.

In April 2024, a federal court in Seattle sentenced Zhao to four months in prison on charges of money laundering and other illegal activities.

In November 2023 CZ pleaded guilty to failing to maintain an effective anti-money laundering program at Binance as the head of the company. As part of an agreement with the US Department of Justice, he agreed to pay a fine of $50 million and resign from his position as CEO.

For the organization, the settlement amount was $4.3 billion.

Source: Cryptocurrency

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