Despite increasing regulatory scrutiny, Visa and Mastercard have not cut ties to Binance cryptocurrency exchange. The payment giants Visa and Mastercard have not blocked Binance, and cardholders still have the option to use Visa or Mastercard to deposit funds at the exchange.
Visa informed the Financial Times on Friday that it was aware of the FCA’s recent Binance statement. It also stated that it was in dialogue with Binance to keep track of developments. The Financial Conduct Authority (FCA), issued a warning to Binance, stating that the exchange was not authorized to engage with regulated activities in the U.K.
Mastercard also spoke out in support of the publication:
We will continue to monitor the situation and see how exchanges comply with regulatory requirements.
Binance also offers a Visa debit card with Visa branding that allows users to use funds from their crypto wallets to purchase goods at retailers. Contis issued the Binance card. It is available in many European countries. Contis provides payment services in the EU via an e-money licence from Lithuania’s central banking.
Following the FCA warning, a number of U.K. banks have stopped fund transfers to Binance. According to reports, the relationship between Binance and payment service providers Clear Junction as well as BCB Group has been ended. The exchange has stopped sterling withdrawals via Faster Payments, and euro deposits via SEPA bank transfer.
In an open letter, Changpeng Zhao , Binance CEO, stated last week that his company had ‘grown very quickly’ and that he didn’t always have everything right. Zhao claimed that his exchange had already passed multiple anti-money laundering audits. He promised to take steps to improve regulatory compliance.
Other than the U.K. and Japan, Binance has been warned by other countries, including Italy, Thailand, Japan, Thailand, Italy and Lithuania.