Binance and Mastercard: A Shift in Partnership
Binance, a prominent player in the cryptocurrency industry, has once again grabbed headlines. This time, it involves a significant decision made by Mastercard, a leading payment service provider. The move comes as Binance’s native cryptocurrency, BNB, faces potential challenges amidst its price action that seems to be trending toward a bearish zone.
End of the Crypto Card Program
Mastercard and Binance have decided to part ways, marking the conclusion of their collaborative crypto card program. The repercussions of this separation are notably felt in card payment services across four specific regions.
Binance, recognized as the largest cryptocurrency exchange by trading volume, is currently navigating through intensified regulatory scrutiny from Western regulatory authorities. In the most recent turn of events, Mastercard, a significant player in the payment processing realm, announced its decision to discontinue its partnership with Binance.
Impact on Card Payment Services
The termination of this partnership has had a direct impact on the availability of card payment services in four regions: Argentina, Brazil, Bahrain, and Colombia. Users in these regions are no longer able to utilize their cards for payments, as Binance had previously suspended and restricted its card services there.
According to sources, Binance’s card program is scheduled to come to an end by September 21, 2023. The crypto exchange has also revealed that processes related to refunds and disputes concerning the cards program will be addressed by December 2023.
Despite the announcement, Mastercard has not provided specific reasons for its decision. However, the company did assure that its other crypto card program partners, such as Gemini, will not be affected.
Binance has been proactive in communicating this development to its users via social media platforms. A recent tweet stated:
“The Binance card will no longer be available for users in Latin America and the Middle East. The product, like most debit cards, has been utilized by Binance’s users to pay for basic daily expenses but in this case, the cards are funded with crypto assets. Only a tiny portion of our users (less than 1% users in the markets mentioned) are impacted by this.”
Impact on BNB
Curiously, this recent development doesn’t appear to have significantly impacted the status of Binance Coin (BNB). According to CoinMarketCap data, BNB continues to hold its position as the fourth-largest cryptocurrency in the market, boasting a market capitalization exceeding $33 billion.
As of the latest update, BNB is trading at $216, exhibiting a relatively stable 24-hour trading performance. However, over the past seven days, the coin has witnessed a 3.99% decline, a trend that aligns with the broader cryptocurrency market.
Technical analysis suggests a cautious outlook for BNB in the short term. The Relative Strength Index (RSI) has dipped below the neutral 50 mark on the one-hour chart, signaling a bearish sentiment. Similarly, the Moving Average Convergence Divergence (MACD) indicator, while above the zero line, has exhibited a bearish crossover, hinting at BNB’s efforts to maintain stability.
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