TL;DR
- Service Reinstatement: Binance has resumed Visa and Mastercard services, allowing bank transfer purchases of cryptocurrencies with transaction limits set for euros and U.S. dollars.
- Regulatory Settlements: The exchange settled with U.S. regulators, paying a $4.3 billion fine for Anti-Money Laundering law violations, despite no evidence of user fund misappropriation.
- Leadership Changes: Founder Changpeng Zhao resigned as CEO and served a prison sentence, but plans to remain involved in the cryptocurrency industry after his release.
Binance, the world’s preeminent cryptocurrency exchange, has announced the reinstatement of its Visa and Mastercard services. This move marks a significant turnaround from the previous suspension of card offerings, which was speculated to be a result of regulatory pressures.
Crypto made easy—buy and sell with ease. 🤌
Use Mastercard, Visa, or SEPA, for bank transfers, and experience smooth transactions!
Try it now 👉🏻 https://t.co/shCZx59fi3 pic.twitter.com/05pzOC3sjh
— Binance (@binance) June 6, 2024
The exchange had previously discontinued Visa debit card services in the European Economic Area (EEA) on December 20, following a period of intense scrutiny from regulatory bodies.
In June 2023, Binance faced a double blow as the U.S. SEC filed charges against them, coinciding with the suspension of their services. The SEC accused Binance of misappropriating customer funds and conducting unregistered securities offerings.
This was compounded by the Commodity Futures Trading Commission (CFTC) suing the exchange for registration failures and guideline violations.
The Resumption of Services and Regulatory Settlements
Starting from June 6, Binance is once again allowing users to buy cryptocurrencies through bank transfers using Visa, Mastercard, and SEPA transfers. The platform has reactivated the “buy crypto” feature, with a maximum limit of 5,000 euros for transactions in euros and $20,000 for purchases in U.S. dollars.
This resumption could signal the end of Binance’s regulatory troubles, especially following a settlement in the United States. Despite the lack of evidence for user fund misappropriation, Binance faced charges for violating Anti-Money Laundering laws and agreed to pay a $4.3 billion fine—one of the largest in criminal history.
Leadership Changes and Future Prospects
Following these agreements, Binance founder Changpeng Zhao, or “CZ,” resigned from his position as CEO. Additionally, during an April trial, Zhao was given a four-month prison sentence and instructed to pay a $50 million penalty for money laundering charges linked to his digital currency platform.
After starting his term in June at a federal prison in Lompoc, California, Zhao faced numerous challenges. However, undeterred by these obstacles, he remains determined to stay active in the world of cryptocurrency once he is released.
The reinstatement of Visa and Mastercard services by Binance is a pivotal development in the cryptocurrency market, indicating a potential easing of regulatory challenges and a step towards normalizing crypto transactions globally.
