Key Takeaways
- Binance will cease its Visa debit card service in the EEA on December 20th.
- The company has been navigating through a range of difficulties, including service disruptions in the UK and issues with US dollar transactions.
- Regulatory pressures have also impacted Binance, evidenced by Mastercard ending its partnership with the company in several countries.
Binance has officially revealed that its Visa debit card services will be terminated in the European Economic Area (EEA) starting December 20th.
Two months before the halt, on October 20th, Binance informed the public about its decision. It is worth noting that the halt comes after Contis Financial Services, a Lithuanian-based financial institution owned by Germany's Solaris Group, decided to stop issuing cards.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What is Tezos? XTZ Cryptocurrency Easily Explained (ANIMATED)
The Binance Visa debit card was first introduced to the EEA in September 2020, allowing users to convert their crypto holdings into local currencies for everyday transactions.
When it comes to the new update, a Binance spokesperson noted:
Although Binance users from around the world have enjoyed using <the Binance Visa debit> card to make day-to-day payments with crypto assets, only around 1% of our users are impacted by this change.
This closure represents another headwind for Binance, which has faced several obstacles recently. For instance, euro deposits and withdrawals were suspended for a month after Paysafe discontinued its services. Moreover, due to operational issues, Binance is still not accepting new users in the United Kingdom.
In related developments, Binance.US warned users about potential US dollar deposits and withdrawal suspensions. However, a recent partnership with MoonPay has enabled US clients to purchase Tether (USDT) on the crypto exchange and withdraw dollars by converting them into stablecoins.
Outside the EEA and the United States, Binance experienced a setback when Mastercard terminated its partnership with the firm in Argentina, Brazil, Colombia, and Bahrain last September. Regulatory scrutiny was cited as the reason for this separation.
The discontinuation of Binance's Visa debit card services in the EEA is the latest in a series of challenges for the cryptocurrency giant. Yet, the company remains committed to exploring alternative avenues and forming new partnerships to cater to its global audience.
