Binance is planning to end its debit card services in the European Economic Area (EEA) on December 20, 2023. This decision, outlined in an official announcement yesterday (Friday), will not affect Binance accounts.
The move occurs as the cryptocurrency exchange grapples with regulatory pressure and challenges, reflecting a broader trend in the cryptocurrency industry. Binance Visa Debit Card issuer, Contis Financial Services plans to halt the issuance of the debit cards. Contis is an electronic money institution and currency exchange operator owned by Solaris Group.
"Your Binance accounts are not affected," Binance stated. "Holders of the Binance Visa Debit Card issued under the EEA program will have until December 20, 2023, 00:00 (UTC+0) to use their cards, after which card purchases will no longer be possible."
Binance Recommends Alternative Service
While Binance's debit card services in the EEA are coming to an end, the top crypto exchange has committed to providing an alternative solution for its users. In a statement, Binance recommended Binance Pay, a cryptocurrency payment technology, for its users to utilize in shopping with crypto at the supported merchant outlets.
JUST IN: #Binance announces that its Visa Card program will be shutting down later this year in the European Union after years of operating illegally without regulations. This news comes as Binance's France Director abruptly resigns, making him the 10th senior executive to… pic.twitter.com/re9h59pgBl
— WhaleWire (@WhaleWire) October 20, 2023
Binance introduced the Binance Visa Debit Card to the EEA in 2020. It allows users to convert and spend their digital assets at over 60 million locations worldwide. The EEA includes all 27 European Union member states, as well as Iceland, Liechtenstein, and Norway. Despite its widespread adoption, Binance noted that only a small fraction of its users, approximately 1%, will be affected.
Navigating Regulatory Scrutiny
This decision follows a series of setbacks for Binance and its US affiliate, Binance.US. Recently, Binance.US announced that UScustomers could only withdraw dollars by converting fiat currency into stablecoin. In June, the platform suspended US dollar deposits and warned about the imminent suspension of withdrawals.
Binance Visa Debit Card operates like a conventional debit card but with a crypto twist. It allows users to hold digital assets such as BTC, BNB, and BUSD. The card is linked to a card wallet within Binance accounts. This connection allows users to replenish their funds from their spot wallet.
Binance Visa Debit Card converts crypto funds into local currency when making purchases, enabling instant transactions. This service was terminated after Binance had restored euro deposits and withdrawals, which had been unavailable for a month due to the exit of its payments processor, Paysafe.
This article was written by Jared Kirui at www.financemagnates.com.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments