Binance Pulls the Plug

Cryptocurrency exchange Binance is set to discontinue its cryptocurrency debit card services in Latin America and the Middle East. 

These debit cards, which functioned just like regular ones but allowed users to make purchases using cryptocurrencies, will see their services fade out by September 21st. The opportunity for refunds and dispute resolutions will remain open until December 20, 2023, marking a change in Binance's payment solutions in these regions.

The trigger for this decision came from a user on platform X who raised issues about crypto debit cards in Colombia. Binance responded by announcing the suspension of debit card services starting from August 25th. 

However, the exact reasons behind this choice remain undisclosed. Binance had initially introduced the concept of cryptocurrency-backed debit cards in April 2020, aiming to tap into the expansive global payment market. By July 2020, these crypto debit cards had already gained traction across Europe and other international locations.

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Bid for Global Crypto Card Dominance Takes a Hit

Binance had also partnered with payment processor Swipe, aiming to extend the reach of crypto debit cards to the United States. Despite inquiries, Binance chose to keep the underlying motives behind discontinuing its crypto debit cards in Latin America and the Middle East under wraps. 

Interestingly, Binance revealed that less than 1% of its users in these regions would be impacted by the change. The cryptocurrency exchange introduced the card in Latin America less than a year ago. The service began in Argentina, the region's second-largest country, in August 2022 and in Brazil, the region's largest, last January.

The move follows Binance's closure of its cryptocurrency payments service, Binance Connect, which facilitated cryptocurrency payments for merchants. The exchange explained that this decision was aimed at redirecting focus to its core products.