Binance has announced the impending closure of its Visa debit card services in the European Economic Area (EEA), set to take effect on December 20, 2023. This decision, outlined in an official announcement yesterday (Friday), will not affect Binance accounts.
The move comes as the cryptocurrency exchange grapples with regulatory pressure and challenges, reflecting a broader trend in the cryptocurrency industry. The card issuer, Contis Financial Services, will halt the issuance of the Binance Visa Debit Cards. Contis is an electronic money institution and currency exchange operator owned by Solaris Group.
"Your Binance accounts are not affected," the crypto exchange stated. "Holders of the Binance Visa Debit Card issued under the EEA program will have until Dec 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 Card services in the EEA are drawing to a close, Binance has committed to providing an alternative solution for its users. The cryptocurrency exchange has recommended Binance Pay, a cryptocurrency payment technology, for its users to use in shopping with crypto at compatible merchants.
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 Visa 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 announced that US customers could only withdraw dollars by converting fiat into stablecoin. On the other hand, Binance.US suspended US dollar deposits in June and issued a warning about the suspension of withdrawals.
Binance Visa Card operates like a conventional debit card but with a crypto twist. It allows users to hold digital assets such as BTC, BNB, SXP, and BUSD. The card is linked to a Card Wallet within any Binance account. The connection allows users to replenish their funds from their spot wallet.
The card converts crypto funds into local currency when making purchases, enabling spending at 60 million locations globally. The termination of this service occurred after Binance restored euro deposits and withdrawals, which had been unavailable for a month due to the exit of payments processor Paysafe.
This article was written by Jared Kirui at www.financemagnates.com.
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