Binance’s decision to suspend its crypto debit card services in Latin America and the Middle East, effective August 25th, has been announced without divulging the precise rationale behind the suspension. Binance did, however, assert that the impact of this suspension would be limited to just 1% of users within the affected regions.
Operating akin to conventional debit cards, the crypto debit cards facilitated the payment for everyday goods and services, albeit with the distinction that these cards were funded using cryptocurrency assets.
The termination of crypto debit card services in Latin America and the Middle East is slated to be finalized by September 21st. Notably, this exchange has stipulated that reimbursement processes and the handling of disputes will remain operational until December 20th, 2023.
The emergence of this situation was triggered by an inquiry from a user on the X platform (previously known as Twitter) regarding issues related to crypto debit cards in Colombia. Binance’s response to this inquiry came in the form of an announcement, indicating the impending suspension of debit card services commencing August 25th, albeit without shedding light on the specific factors influencing this decision.
Hello there,— Binance Customer Support (@BinanceHelpDesk) August 23, 2023
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…
In April 2020, Binance initially unveiled its strategy to introduce debit cards supported by cryptocurrencies, with the objective of establishing a presence in the global payment sector. By July 2020, these cryptocurrency-backed debit cards had begun to be dispatched to various European nations and other locations around the world. Subsequently, this exchange formed a partnership with Swipe, a payment processing company, with the intention of extending the availability of these crypto debit cards into the United States.
Binance Offers No Clarity on Suspension
According to a report, In an attempt to gain insight into the potential reasons for the suspension of its crypto debit card services in Latin America and the Middle East, contacted Binance. Regrettably, the exchange declined to furnish this information. Nevertheless, in response to inquiries, this exchange did confirm that the impact of this suspension would be confined to a small percentage of its user base, specifically less than 1% of users within the aforementioned markets.
Despite Binance’s assertion that only a minor fraction of users would be affected by this course of action, a few of the statements made by Binance CEO Changpeng Zhao on the X platform (formerly known as Twitter) regarding the announcement and the ensuing discussions were subsequently removed.
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