It's no news that Binance, a major crypto company, is encountering significant challenges in the United States and other regions. Due to the numerous regulatory issues surrounding the crypto exchange, it appears that a major overhaul is currently underway.
Apparently, their major focus is now on their core services instead of other attachments. They are doing this by cutting off some of the services that don't fit into their plan. One is the Binance debit card service, which the exchange announced will go extinct in several locations.
According to the exchange, the Binance debit card services won't be available again in Latin America and the Middle East from September 21, 2023.
Users were informed of this news on Twitter (now known as X). A Binance customer inquired about the service and asked if the Republic of Colombia is still one of the countries supported by the Binance card. The customer service team responded by stating that the service would be discontinued at the end of September 21st.
"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 portion of our users (less than 1% of users in the markets mentioned) are impacted by this," the customer care said.
Binance recently announced that its card payment service will be unavailable in Latin America and the Middle East. However, they have reassured users that the service remains available in other locations and that this change will not affect their Binance accounts.
"Users of this product will have until September 21, 2023, when the card will no longer be available for use. Binance accounts around the world are not affected. Where available, users can also shop with crypto and send crypto using Binance Pay, a contactless, borderless, and secure cryptocurrency payment technology designed by Binance," Binance added.
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…
Any Reason for the Decision?
Binance didn't provide a specific reason for removing their card payment services in some parts of the world. The only major compromise in their announcement is that they told users they can use alternatives on the platform, such as the Binance Pay.
The recent suspension is suspected to be caused by Binance's decision to focus on their core products. The largest crypto exchange has been implementing this decision gradually.
It has also been recently announced that Binance will be suspending its payment service, Binance Connect. This service was initially called Bifinity when it was launched. The suspension of this payment service highlights Binance's commitment to removing some of its services.
The Securities and Exchange Commission's problem with the popular crypto exchange is causing further complications. Bloomberg recently reported that the exchange had trouble obtaining a payment processing platform and had to team up with a payment startup called MoonPay to resolve payment issues in the US. Given Binance's current trajectory, it's likely that we'll see new developments.