Key Takeaways
- Binance stated that the decision would affect only a minimal fraction of its user base.
- ” Users will have until September 21, 2023, to use the card before it becomes unavailable.
Cryptocurrency exchange Binance has announced its decision to suspend its crypto debit card services across Latin America and the Middle East starting from August 25. This move comes as the company seeks to discontinue its crypto-backed debit card offerings in these regions.
The termination of crypto debit card services in Latin America and the Middle East is scheduled for September 21. However, Binance has assured its users that they will have the opportunity to process refunds and address disputes related to the service until December 20, 2023.
Binance clarified the extent of the impact in a statement shared on X (formerly Twitter), highlighting that this decision will affect only a minimal fraction of their user base. The announcement read, “Only a tiny portion of our users (less than 1% of users in the markets mentioned) will be impacted by the decision.” Users utilizing this service will have until September 21, 2023, to use the card before it becomes unavailable.
The initiative for cryptocurrency-backed debit cards was first introduced by Binance in April 2020 and aimed at venturing into the global payment market. By July of the same year, these crypto debit cards had already been rolled out to various European countries and other parts of the world.
Binance’s crypto debit card made headlines earlier in 2023 with the launch of its prepaid crypto card in Colombia. The card boasted a unique feature that facilitated real-time conversion of digital assets into fiat currency during point-of-sale transactions, enabling users to shop at more than 90 million merchants worldwide.
This development coincides with the recent move by payment startup firm MoonPay, which allows customers of Binance.US to convert their dollars into cryptocurrencies. Binance.US had suspended U.S. dollar deposits back in June, and the partnership with MoonPay provides an alternative route for customers to enter the crypto market using their existing fiat funds.
The move follows on the heels of Binance shutting down its buy-and-sell service Binance Connect as the crypto exchange wants to refocus on its main products and long-term goals.
