Mastercard has decided to cut ties with Binance in Latin America, per an August 25 report by Bloomberg. This move comes on the heels of Visa’s earlier decision in July to stop issuing new co-branded cards with Binance in Europe. 

Bloomberg noted:

“The actions by Visa and Mastercard further isolate Binance from traditional financial systems, marking a setback in the crypto exchange’s efforts to gain mainstream acceptance.”

While Visa has remained silent on its decision, these developments underscore the caution exercised by traditional financial institutions in collaborating with the crypto exchange.

Complicating matters in Latin America, Binance announced the termination of its crypto debit card services in both the Middle East and Latin America, effective August 25. 

The announcement was made in response to a Twitter inquiry about a Binance Card issue in Colombia. Binance clarified that this change would affect less than 1% of its user base in the mentioned regions.

Amid growing global regulatory scrutiny, Australian banking partner Cuscal also severed its relationship with Binance, suspending Australian dollar transactions via PayID. Cuscal stated:

“Cuscal maintains rigorous due diligence and compliance standards for our clients, their customers, and merchants. We will continue to discontinue relationships that do not meet our stringent requirements.”

Binance is also facing legal challenges from U.S. regulatory bodies, including the Securities and Exchange Commission and the Commodity Futures Trading Commission. These agencies have accused the exchange and its CEO, Changpeng “CZ” Zhao, of violating securities regulations and allowing unauthorized access to U.S. users. Binance has disputed these allegations, with Zhao expressing a desire to “minimize losses and avoid trouble with U.S. regulatory authorities.”