Binance Suspends Crypto Debit Cards in Latin America & the Middle East

Sahana Kiran
Source – Unsplash

Binance has been withdrawing its services from numerous global markets. Although the primary reasons are regulatory concerns, some closures stem from limited service adoption. For instance, the exchange recently declared its intention to temporarily halt its cryptocurrency debit card offerings in both Latin America and the Middle East, effective Aug. 25.

Using their official Twitter account, the exchange conveyed that the availability of the Binance Card would no longer extend to the regions mentioned earlier. Functioning similarly to conventional debit cards, this crypto debit card enabled users to conduct everyday transactions. The distinguishing factor was that the card’s funding relied on cryptocurrency holdings.

Binance’s crypto debit card offerings in Latin America and the Middle East will be suspended by Sept. 21. However, the exchange has assured users that they can still handle refunds and address disputes until Dec. 20, 2023. The exchange further added,

“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 the exchange.”


Also Read: Ends Binance Contract Over Compliance Concerns

Analyzing Binance’s latest suspension

The most recent suspension is due to the fact that this action affects only a small fraction of our user base, which is less than 1% of users in these markets. Furthermore, this recent development coincides with the launch of Binance Pay in Brazil. This new payment method offers local businesses a novel option that could attract a larger customer base, enhance transaction speed, and reduce costs. Guilherme Nazar, who serves as the General Manager of the exchange in Brazil, emphasized the growing interest of the Latin American region in cryptocurrencies. Nazar elaborated,

“Brazil registers one of the highest crypto adoption increase rates. Companies and merchants can now benefit from high processing speeds, low costs, and security provided by Binance Pay.”

Also Read: Binance Might ‘Not’ be Manipulating the Bitcoin Market Yet