Binance, the world’s largest cryptocurrency exchange, has announced that it will stop offering its crypto debit card services in Latin America and the Middle East. The decision, which affects less than 1% of its customers in these regions, comes amid increasing regulatory scrutiny on the exchange.
Hello there,
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…— Binance Customer Support (@BinanceHelpDesk) August 23, 2023
Binance Keeps Attempting to Comply with Regulations
The Binance Card, launched last year, allows users to pay with their crypto assets at any merchant that accepts Visa. The card automatically converts the crypto balance into fiat currency at the point of sale. However, the card services will be unavailable from September 21, 2023.
Binance did not provide a clear reason for the withdrawal of the card services, but it suggested that users can still use Binance Pay, another payment option that enables peer-to-peer and merchant payments with crypto and fiat currencies. Binance also assured that refunds and disputes related to the card services can be processed until December 20, 2023.
The move follows a series of similar actions by Binance to scale back some of its products and services in response to the growing pressure from regulators around the world. The exchange has recently suspended its derivatives trading in several countries, including Germany, Italy, and the Netherlands.
It has also terminated its Binance Connect service, which enabled traditional businesses to accept crypto payments. Binance has been facing challenges from regulators who accuse it of operating without proper licenses and violating anti-money laundering rules.
The exchange has been banned or warned in several jurisdictions, including the UK, Japan, Singapore, and the US. To cope with the regulatory hurdles, Binance has partnered with MoonPay, a crypto startup that allows its US customers to buy USDT with fiat currencies.
Binance’s CEO Changpeng Zhao, also known as CZ, has stated that the exchange is committed to complying with local regulations and working with authorities to ensure the safety and growth of the crypto industry. He has also expressed his optimism about the future of crypto and Binance’s role in it.
