In the latest step of the ongoing quarantine, two major players in the global payments industry, Visa and Mastercard, have terminated their partnerships with crypto exchange platform Binance. The move poses significant challenges for Binance users and raises questions about the future of the platform amid tightening regulations and oversight in the crypto industry.

According to a Binance spokesperson, Visa has stopped issuing co-branded Binance cards in the European region since July. The Binance Visa card program was introduced in September 2020, providing exchange users with coins electronic ability to make daily payments with digital assets. Meanwhile, Mastercard will be severing its partnership with Binance entirely starting September 22, though the specific reason behind the decision has yet to be revealed.

The obvious reason Visa and Mastercard pulled out of Binance stems from regulatory investigations into the platform's activities. Binance has consistently faced regulatory challenges, from failing to comply with securities regulations to violating restrictions on US user access. Furthermore, the exchange has run into regulatory troubles in Europe, faced investigations in France, lacked a license in Germany, and was banned in Belgium and the Netherlands.

The relevant figures show that decisions by Visa and Mastercard could have a significant impact on Binance's operations. The Binance Visa Card has been launched in Argentina, Brazil, Colombia and Bahrain. While Binance has stated that only about 1% of users in the US and the Middle East will be affected, withdrawals by major payment partners like Visa and Mastercard could trigger similar actions from banks. customers and other service providers.

Prior to that, Binance had faced a series of setbacks, including being cut off from the US banking system and suspended by some Australian banks. These events have raised concerns in the crypto community and raised doubts about the sustainability of the exchange.

Amid this uncertainty, both Binance and regulators are focused on finding the best possible solutions to the current situation. In August, it was rumored that the US Department of Justice (DOJ) was looking into fraud allegations against Binance. However, the DOJ is considering more safety measures to ensure that the resolution of the issue does not significantly affect users and the crypto market.

During this period of uncertainty, Binance has struggled with isolation and challenges from major payment partners such as Visa and Mastercard that have painted a complex picture of the future of the crypto industry and how the market will operate. will respond in the coming days.