Cryptocurrency exchange Binance will suspend crypto debit card services in Latin America and the Middle East starting August 25.
The crypto debit card works similar to other debit cards, allowing users to pay for everyday goods and services. The only difference is that the cards are funded with crypto assets.
Crypto debit card services in Latin America and the Middle East will end on September 21, but the exchange claims refunds and disputes can still be processed until December 20, 2023.
The issue first came to light when an X (formerly known as Twitter) user asked about Colombia’s crypto debit card. Binance issued an announcement in response to inquiries suggesting that the debit card service would be suspended starting August 25, but did not clarify what led to the decision.
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Users in Latin America and the Middle East will no longer be able to use Binance Card. Like most debit cards, the product has been used by Binance users to cover basic day-to-day expenses, but in this case the cards are funded with crypto assets. Only a tiny…— Binance Customer Support (@BinanceHelpDesk) August 23, 2023
Binance No. 1 Announce The company plans to launch a cryptocurrency-backed debit card in April 2020, aiming to enter the global payments market. As of July 2020, the crypto debit card was shipped to European countries and several other countries around the globe. The cryptocurrency exchange later partnered with payment processor Swipe to offer crypto debit cards in the United States.
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Cointelegraph reached out to Binance about possible reasons for suspending its crypto debit cards in Latin America and the Middle East, but the exchange did not provide this information. However, Binance told Cointelegraph that “only a small percentage of users (less than 1% of users in the aforementioned markets) are affected by this.”
While Binance claimed that only 1% of such users would be affected by the decision, some X posts by Binance CEO Changpeng Zhao regarding the announcement and responses to it have since been deleted.
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