Cryptocurrency exchange Binance will suspend crypto debit card services in Latin America and the Middle East from August 25. The crypto debit card worked like any other debit card, allowing users to pay for everyday goods and services. The only difference was that these cards were financed with crypto assets. Here are the details…
Binance ends debit card services
Crypto debit card services in Latin America and the Middle East will be terminated on September 21, but the exchange has claimed that refunds and disputes can be processed by December 20, 2023. The issue first arose when an X (formerly Twitter) user asked about problems with crypto debit cards in Colombia. Binance responded to this question with an announcement that debit card services would be suspended from August 25, and did not explain what led up to this decision. The following statements are included in the statement:
Hello, Binance Card will no longer be available to users in Latin America and the Middle East. The product, like most debit cards, is used by Binance users to pay for basic daily expenses, but in this case the cards are financed with crypto assets. Only a small fraction of our users (less than 1% of users in the mentioned markets) are affected. Users of this product will have until September 21, 2023, when the card can no longer be used. Binance accounts around the world are not affected. Where available, users can exchange and send crypto using Binance Pay, a contactless, frameless and secure cryptocurrency payment technology designed by Binance.
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
Services started in April 2020
Binance first announced its crypto-backed debit cards plan in April 2020 as it aims to enter the global payments market. As of July 2020, crypto debit cards started shipping to European countries and several other countries around the world. The crypto exchange later partnered with payment processor Swipe with the intention of offering crypto debit cards in the United States.
Cointelegraph reached out to Binance about the possible reasons behind the suspension of crypto debit cards in Latin America and the Middle East, but the exchange did not provide this information. However, Binance told Cointelegraph that “only a small fraction of our users (less than 1% of users in the specified markets) are affected by it.” While Binance claims that only 1% of such users will be affected by the decision, some X posts from Binance CEO Changpeng Zhao regarding the announcement and responses to it were deleted.
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