Despite increased regulatory issues with Binance, Visa and Mastercard have not cut links with the cryptocurrency exchange. Cardholders can still deposit funds into their accounts at the exchange using Visa and Mastercard.
The Financial Times reported on Friday that Visa was “aware of the recent FCA announcement about Binance,” and that it was in “conversation with Binance to monitor developments.”
Binance has been issued a warning by the Financial Conduct Authority (FCA), claiming that the exchange is not authorized to participate in regulated activities in the United Kingdom.
We continue to monitor this situation, including how the exchanges fulfill their regulatory requirements.
Binance also offers a Visa-branded debit card that allows users to spend funds from their crypto wallets at stores, according to Mastercard.
Contis, a company that provides payments services in the EU through an e-money license from Lithuania’s central bank, issues the Binance card, which is accepted in many European countries.
Following the FCA’s warning, a number of UK banks, including Barclays and Santander, have halted fund transfers to Binance. Binance’s relationships with payment service providers Clear Junction and BCB Group have also reportedly ended.
Sterling withdrawals via Faster Payments and euro deposits via SEPA bank transfers have been disabled by the exchange.
In an open letter published last week, Binance CEO Changpeng Zhao stated that the company “has developed very quickly and we haven’t always gotten everything quite right.”
Zhao promised to improve regulatory compliance, claiming that his exchange has already “cleared multiple external anti-money laundering audits.”
