Cryptocurrency Exchange Binance Suspends Crypto Debit Card Services
In a recent surprise move, the premier cryptocurrency exchange, Binance, has decided to halt its crypto debit card services. This suspension will affect customers in Latin America and the Middle East. The suspension will take effect on August 25th.
Features of Binance’s Crypto Debit Card
- Works similar to common debit cards
- Allows day-to-day transactions
- Unique aspect – funded by cryptocurrency assets
Timeline of Service Suspension
- Service suspension starts – August 25
- Complete discontinuation of crypto debit services – September 21
- Resolution of refunds and disputes – until December 20, 2023
A look at the interface of Binance’s crypto debit card. Source: X
Reason for Suspension Discovered Unexpectedly
The decision to suspend the crypto debit card services came to light when a user on X (formerly Twitter) reported difficulties encountered with crypto debit cards in Colombia. Binance responded by announcing the suspension of debit card services starting August 25th. However, the reasons behind this decision have not been disclosed by Binance.
Hello there,
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 for everyday expenses but in this case, the cards are funded with crypto assets. Only a tiny…
— Binance Customer Support (@BinanceHelpDesk) August 23, 2023
Binance’s Vision for Crypto-Backed Debit Cards
Back in April 2020, Binance initially announced its crypto-backed debit card project with the goal of entering the global payment market. By July of the same year, the company had already started shipping crypto debit cards to several countries, including Europe. They later partnered with payment processor Swipe to offer these cards to clients in the United States.
Binance Stays Mum about the Cause of Suspension
Although speculation about the reasons behind the suspension of Binance’s crypto debit cards in Latin America and the Middle East has been circulating, the exchange has not confirmed any specific reasons. When Cointelegraph reached out to Binance for clarification, the exchange stated that only a small percentage of users (less than 1%) in these regions would be affected by the suspension.
Interestingly, some tweets by the Binance CEO regarding the debit card-related announcement and responses on X have recently been deleted.
