Binance Suspends Crypto Debit Card Services in Latin America and the Middle East

In a strategic move, Binance, a prominent player in the cryptocurrency exchange arena, has chosen to halt its crypto debit card services across Latin America and the Middle East, effective as of August 25.

These cryptocurrency-backed debit cards functioned similarly to conventional debit cards, facilitating seamless payments for everyday expenses. The unique aspect lay in their funding, sourced from users’ cryptocurrency assets.

However, as of September 21, the availability of crypto debit card services in the specified regions will come to an end. Binance has assured users that avenues for refunds and dispute resolutions will remain open until December 20, 2023.

The issue first emerged when an observant X user, previously known as Twitter, raised concerns regarding the functionality of crypto debit cards in Colombia. Binance responded to this inquiry with an announcement indicating the suspension of debit card services from August 25 onwards. Notably, the exchange refrained from divulging the factors contributing to this decision.

Binance initially unveiled its ambitious plan for crypto-backed debit cards in April 2020, marking its foray into the expansive global payment market. By July of the same year, these innovative crypto debit cards had already made their way to European countries and various other regions worldwide. In a strategic move, Binance joined forces with payment processor Swipe, setting its sights on introducing crypto debit cards to the United States market as well.

In an effort to gather insights into the rationale behind the suspension of crypto debit cards across Latin America and the Middle East, CryptoGrafos reached out to Binance for comment. Regrettably, the exchange remained reticent on the matter. On the other hand, Binance did provide a statement, clarifying that “only a tiny portion of our users (less than 1% of users in the markets mentioned) are impacted by this.”

Despite Binance’s assertion that the decision would affect just 1% of the users in question, keen observers noticed the deletion of certain tweets made by the CEO of Binance pertaining to the crypto debit card announcement, alongside removed responses on the X platform.

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