Binance Terminates Crypto Debit Card Services in Latin America and Middle East
Cryptocurrency exchange Binance will be suspending its crypto debit card services in Latin America and the Middle East from Aug. 25. This card works like other debit cards, allowing users to pay for everyday goods and services, but with the difference that it is funded by cryptocurrency assets.
The termination of the crypto debit card services in Latin America and the Middle East will be effective by Sept. 21, while Binance stated that refunds and disputes can still be processed until Dec. 20, 2023.
The news of the suspension came to light when an X (formerly Twitter) user asked about issues with crypto debit cards in Colombia. Binance responded to the query with an announcement suggesting that the debit card services will be suspended starting Aug. 25, without giving any further details on the reason behind the decision.
Binance Crypto Debit Cards Suspended in Latin America and Middle East
In April 2020, Binance first announced its plans to enter the global payments market with crypto-backed debit cards. By July 2020, these cards had been shipped to countries in Europe and other parts of the world. The crypto exchange later partnered with payment processor Swipe with the intention to offer crypto debit cards in the United States.
Cointelegraph contacted Binance to understand the reasons behind suspending its crypto debit cards in Latin America and the Middle East, but the exchange declined to provide any information. However, Binance informed Cointelegraph that “only a tiny portion of our users (less than 1% of users in the markets mentioned) are impacted by this.”
Although Binance stated that only 1% of users would be affected by this decision, some of Binance CEO Changpeng Zhao’s X posts about the announcement and responses to it were deleted.
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