Binance, the world’s largest cryptocurrency exchange, has resumed allowing its customers to purchase cryptocurrencies using Mastercard. This move is seen as a significant step in the platform’s efforts to resolve its regulatory issues and continue its global operations smoothly.

On June 6, Binance announced via a social media post that it had reinstated the ability for users to buy crypto using Mastercard debit and credit cards. This reinstatement allows for one-time purchases of up to 5,000 euros (approximately $5,440) for euro-based transactions, and up to $20,000 for transactions in U.S. dollars.

Commitment to Compliance

A Binance spokesperson emphasized the company’s ongoing investment in compliance, stating that the decision to resume Mastercard transactions followed a thorough review of Binance’s control measures and processes. This reflects Binance’s commitment to adhering to regulatory standards and providing secure, reliable services to its users.

Binance has faced significant regulatory challenges over the past year. In December 2023, the exchange halted its Visa debit card services in the European Economic Area. This decision came shortly after the payment processor Paysafe ceased its services for Binance, affecting euro deposits and withdrawals. Additionally, Mastercard ended its partnership with Binance in Argentina, Brazil, Colombia, and Bahrain in September 2023.

Legal Battles in the U.S.

In June 2023, the U.S. Securities and Exchange Commission (SEC) charged Binance with multiple violations, including misappropriating customer funds and conducting unregistered securities offerings. The Commodity Futures Trading Commission (CFTC) also filed a lawsuit against Binance for failing to comply with registration requirements and guidelines.

Despite these legal issues, Binance managed to settle with the U.S. authorities by agreeing to pay a $4.3 billion fine, one of the largest in history. As part of the settlement, Binance’s founder and then-CEO Changpeng Zhao stepped down and received a four-month prison sentence for money laundering charges. Zhao is currently serving his sentence but plans to remain active in the crypto industry upon his release.

Future Prospects

The resumption of Mastercard-based cryptocurrency purchases indicates that Binance is making progress in resolving its regulatory issues. The platform is expected to continue adding more regulated fiat payment providers, enhancing the ease of crypto purchases for its users.

Binance’s reinstatement of Mastercard payments is a positive development for the exchange and its users. While it signifies progress in overcoming regulatory hurdles, Binance’s journey to full regulatory compliance continues. The exchange remains committed to improving its operations and ensuring a secure trading environment for its global customer base.