Regulatory Hurdles Cleared: Binance Regains Mastercard’s Trust for SHIB and XRP Sales

Regulatory Hurdles Cleared: Binance Regains Mastercard's Trust for SHIB and XRP Sales

Mastercard has resumed allowing users to purchase and deposit crypto assets on the Binance exchange, including popular tokens like Shiba Inu (SHIB) and XRP. This move follows a pause in services in August 2023 due to heightened regulatory scrutiny surrounding Binance.

Regulatory Challenges

During that period, Binance faced legal challenges from U.S. regulators like the CFTC and SEC. In June 2023, the SEC filed a lawsuit against Binance, alleging that the exchange operated as an unregistered securities platform within the U.S.

Addressing Regulatory Concerns

To address these concerns, Binance and its former CEO, Changpeng Zhao (CZ), pleaded guilty to violating the Bank Secrecy Act. This resolution involved a hefty fine exceeding $4 billion, FinCEN registration, and the implementation of a robust anti-money laundering program.

Mastercard’s Trust Regained

With these regulatory hurdles overcome, Binance has now regained Mastercard’s trust. A Binance spokesperson confirmed that Mastercard lifted the ban on crypto purchases after thoroughly reviewing the exchange’s implemented controls. While future Mastercard withdrawals are planned, a specific timeline has not been announced.

Mastercard’s Positive Stance on Cryptocurrencies

Mastercard has consistently demonstrated a positive attitude towards cryptocurrencies and blockchain technology. In March 2024, the company acknowledged Ripple as a leader in shaping cross-border remittance solutions across Latin America.

Expanding Partnerships

This endorsement led to a partnership between Mastercard and Ripple for their central bank digital currency (CBDC) initiative. Beyond Ripple, Mastercard has also fostered collaborations with other prominent crypto-related entities, including Consensys and the Indonesian exchange Fasset.

Benefits of the Renewed Partnership

This renewed partnership between Binance and Mastercard offers several potential benefits. For users, it provides a convenient and familiar method to purchase cryptocurrencies using Mastercard debit and credit cards. For Binance, it expands its payment options and caters to a broader audience.

Moreover, this collaboration fosters legitimacy and trust in the crypto space, potentially accelerating its mainstream acceptance from a broader industry perspective.

Read Also: Shiba Inu Token Burn Soars by 2955%: What’s Behind the Crypto Surge?

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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