Binance Halts its Crypto Card Service in the Middle East and Latin America
- Binance launched its crypto-backed card service in Argentina in 2022 and extended the service to Brazil in January 2023.
- The crypto debit cards enabled users to settle transactions using their crypto assets.
- Binance provided no reason for suspending its card services in the affected regions.
Cryptocurrency exchange Binance has announced that it will discontinue its crypto debit cards in the Middle East and Latin America on August 25 and September 21, respectively. Binance noted that users can still process refunds and disputes until December 30, 2023.
The news was shared on X by the company’s customer support team, claiming that less than 1% of its users are affected by its decision to halt the crypto-backed debit cards.
The announcement read,
The Binance Card will no longer be available to users in Latin America and the Middle East. The product, like most debit cards, has been utilized by Binance’s users to pay for basic daily expenses, but in this case, the cards are funded with crypto assets. Only a tiny portion of our users (less than 1% of users in the markets mentioned) are impacted by this. Users of this product will have until September 21, 2023, when the card will no longer be available for use.
Binance added that today’s decision does not affect its global users. In addition, the crypto exchange provided an alternative to its suspended crypto-debit card services and advised that “where available, users can also shop with crypto and send crypto using Binance Pay, a contactless, borderless, and secure cryptocurrency payment technology designed by Binance.”
The crypto-debit cards provided by Binance became a popular service, especially in Brazil and Argentina. It enabled locals to make purchases using their crypto assets. Binance first launched the crypto card service in Argentina in August 2022 and extended the service to Brazil earlier this year.
Is Binance in trouble?
While Binance provided no reason for terminating its card service, the decision adds to the pile of concerns for its users. Binance recently shut down its crypto payment service, Binance Connect, which enabled merchants to receive payments in cryptocurrency. Binance said the decision was part of its plans to refocus on its main products.
A spokesperson for the exchange said in a statement:
At Binance, we periodically review our products and services to ensure that our resources continue to be focused on core efforts that align with our long-term strategy. In the last six years, Binance has grown from being an exchange to a global blockchain ecosystem with multiple business lines. We consistently adapt and modify our business approach in response to changing markets and user needs.
While Binance has continued to deny rumors of unrest in its operations, many believe that the situation with regulators is affecting its credibility. Reports recently emerged that Binance was selling its bitcoin to pump the price of its BNB token.
The price of the BNB token has fluctuated in recent days, leading to fears that Binance could possibly face a liquidation problem. As usual, Binance has dismissed these reports as attempts to spread FUD (fear, uncertainty, and doubt). But the exchange would hope for a quick change in fortune to prevent any further loss of confidence in its operations.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
