The embattled cryptocurrency exchange, Binance is discontinuing its crypto-backed debit card services in Latin America and the Middle East. While the exchange did not explicitly state the reasons for this move, it can be tied to the growing challenges the company is facing globally.
According to a statement posted by its customer support team on X (formerly Twitter), Binance said the decision has a relatively minor impact, affecting less than 1% of its user base within the affected regions. The company clarified that this step will not affect users' ability to access their accounts or engage in other crypto-related activities.
Impact on Users and Markets
"The Binance Card will no longer be available to users in Latin America and the Middle East," the company announced. "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. Users of this product have until September 21, 2023, when the card will no longer be available for use. Binance's accounts around the world are not affected."
Although the crypto-backed debit card is on its way out, Binance highlighted to its users in the affected regions that they could still use Binance Pay, a platform that allows users to send and receive cryptocurrencies via their mobile devices. Most recently, Binance Pay expanded its horizons to the Brazilian market, enabling customers to conduct transactions using more than 70 cryptocurrencies.
Navigating Change in Crypto Services
The discontinuation of the Binance Card echoes another recent decision by the exchange to shut down its cryptocurrency buy-and-sell service, Binance Connect. According to the company, this step is aimed at realigning Binance's focus on its core products and services. Formerly known as Bifinity, Binance Connect was disabled on August 16, one year after its launch, according to Coindesk.
About two days ago, reports emerged that Binance had temporarily halted euro deposits and withdrawals. The turmoil surrounding the exchange's European operations came to light with a tweet by Binance's customer support's official Twitter account. Yet, Binance's spokesperson maintains that business operations remain unaffected, Finance Magnates reported.
Meanwhile, in a notable development, Binance.US, the US-based counterpart of the global cryptocurrency exchange, Binance recently entered into a partnership with MoonPay to facilitate on-ramp fiat payment services on its platform. This collaboration aims to bolster the fiat-to-crypto on-ramp services within the exchange.
