Amid regulatory woes, Binance buys Swipe for crypto card integration
Let’s recall that Binance had acquired a majority stake in the leading cryptocurrency Visa card issuing platform in July 2020. The exchange noted in an announcement that the purchase aimed to increase mainstream adoption of cryptocurrencies.
But, that’s not it for Swipe as it will also go through a leadership shake-up with the acquisition. Swipe CEO Joselito Lizarondo is set to step down and leave Binance, once the deal is completed, the exchange has confirmed.
Crypto cards on the way
The card issuing platform will become Binance’s crucial purchase, as the platform allowed users to spend cryptocurrencies worldwide. The exchange noted,
“Binance and Swipe work with regulated and licensed entities to issue Visa cards, with Swipe acting as Binance’s card program manager and technology platform. Swipe also works with strategic partners to issue cards in permitted regions and markets.”
Meanwhile, it is worth noting that in the past week, the top cryptocurrency exchange by trading volume revealed that it received licensing approvals from regulators in Bahrain and Canada to provide crypto asset-related services. However, Ontario Securities Commission has recently pulled up the exchange for its “unacceptable” announcement, indicating that regulatory woes are not over for the crypto business.
Binance in trouble again
A report by Bloomberg noted that Binance was rebuked by the Commission for its premature announcement when its registration is still pending. The regulator noted,
“Binance has issued a notice to users, without any notification to the OSC.”
Meanwhile, the exchange has called the entire fiasco a ‘miscommunication.’
Regardless of the exchange being in hot water with regulators across the globe, Binance has continued its growth plans. Another one of Binance’s international expansion has begun in France, where it is financing a 100 million euro ($113 million) initiative along with industry group France FinTech.
With that being said, the exchange is also expanding its offerings. In an update today, Binance has stated that it is adding Chroma (CHR) and Terra (LUNA) as borrowable assets on its loans platform.