In a significant turnaround, global payments giant Mastercard has reportedly reinstated support for users of the leading cryptocurrency exchange Binance.

Last August, Mastercard, renowned for its expansive payments network, ceased its collaboration with Binance, the world's largest cryptocurrency exchange by trading volume. This decision coincided with mounting legal challenges faced by Binance. In June 2023, the U.S. Securities and Exchange Commission (SEC) initiated legal proceedings against Binance, alleging its operation as an unlicensed trading platform in the U.S. and violation of U.S. securities laws.

Binance's legal predicament escalated further towards the end of 2023 when it agreed to a $4.3 billion settlement with the U.S. Department of Justice (DOJ) following allegations of facilitating extensive money laundering activities on the platform. Changpeng Zhao, the longstanding CEO of Binance, resigned and was subsequently sentenced to a four-month prison term. In a bid to restore Binance's reputation, Richard Teng, the exchange's new leader, has emphasized the imperative of adhering to regulatory standards.

Mastercard's decision to reinstate support for Binance users followed an evaluation of the exchange's recent initiatives aimed at implementing enhanced controls. Nevertheless, the ability for users to conduct future transactions remains subject to ongoing reviews by the credit card giant.

Mastercard has exhibited a longstanding interest in the crypto space, particularly emphasizing the potential of blockchain technology to revolutionize payments. In 2018, the company emerged as a key player in blockchain-related patents, alongside industry titans such as IBM and Alibaba. In 2020, it commenced testing the utility of stablecoins for facilitating payments in collaboration with Circle. Additionally, in 2022, Mastercard partnered with cryptocurrency payment app MoonPay to enable its customers to purchase non-fungible tokens (NFTs).