Binance Suspends Cryptocurrency Debit Card Services in Latin America and Middle East

Binance Suspends Cryptocurrency Debit Card Services in Latin America and Middle East

The specific reason for this suspension has not been disclosed by Binance. However, the company stated that the impact would be limited to just 1% of users within the affected regions.

Effective August 25th, cryptocurrency exchange Binance will halt its crypto debit card offerings in Latin America and the Middle East.

Similar to traditional debit cards, the crypto debit card enabled users to make everyday purchases and payments. The unique aspect was that these cards were funded using cryptocurrency assets.

The discontinuation of crypto debit card services in Latin America and the Middle East is scheduled for September 21st. The exchange has assured that refunds and dispute resolutions will continue to be available until December 20th, 2023.

 

The issue initially surfaced when a user, formerly from Twitter, inquired about problems with crypto debit cards in Colombia. Binance responded by announcing the suspension of debit card services starting from August 25th, but without providing further details regarding the reasons behind the decision.

 

Binance had initially revealed its intentions to introduce crypto-backed debit cards in April 2020, aiming to tap into the global payment market. By July 2020, these crypto debit cards were being distributed in European countries and various other parts of the world. Subsequently, Binance partnered with the payment processor Swipe, with plans to extend crypto debit card services to the United States.

Cointelegraph attempted to ascertain the potential motives for Binance's suspension of crypto debit cards in Latin America and the Middle East. However, the exchange did not furnish this information. Nonetheless, Binance informed Cointelegraph that "only a negligible fraction of our users (less than 1% of users in the mentioned markets) will be affected by this."

Although Binance asserted that only a minimal percentage of users would be impacted by this decision, certain posts by Binance CEO Changpeng Zhao related to the announcement and his responses to it were deleted.

 

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