The world’s largest cryptocurrency exchange company Binance Holdings Ltd. Announced that on 25 Aug 2023, it will suspend its crypto Debit cards From the Middle East and Latin America and end its partnership with Mastercard.
In April 2020, Binance First announced their plan to launch the crypto-backed debit cards because of their motive to enter into the global Payment market. Crypto debit cards will be shipped to countries in Europe and Worldwide in other countries in July 2020. With intentions to offer crypto debit cards in the US, the crypto exchange later partnered with payment processor Swipe. Binance’s prepaid crypto card and Mastercard allow their users to make their payments in local fiat currencies, which are funded by their crypto holdings on the exchange. The crypto debit card allows their users to pay for their day-to-day goods and services It also works like other debit cards, but the cards are funded by cryptocurrency assets is the difference. The period of Wind down allows their customers (cardholders) to exchange /convert their holdings easily in the Binance wallets.
Cointelegraph contacted Binance to inquire about some reasons for suspending its cryptocurrency debit cards in Latin America and Middle East. Unfortunately, the exchange did not disclose this information. Binance did mention to Cointelegraph this suspension affects only a small fraction of its users, only less than 1% of users in the mentioned markets are affected. Despite their efforts, Binance declined to provide further details regarding the suspension of its crypto debit cards in these mentioned regions. In Latin America and the Middle East region, the impact of the exchange is less which affects only a small portion of its user base
After the termination of Binance Card, the exchange has made the decision to shut down its cryptocurrency buy-and-sell service. Binance is now focusing on its major core products and services, such as Bifinity, Binance Pay, and Binance Connect. While the crypto debit card is being phased out, Binance Pay offers customers the ability to conduct transactions using over 70 cryptocurrencies.
Binance Pay has increased its reach to the Brazilian market, that their allowing users to send and receive cryptocurrencies through their mobile devices/smart devices. Binance has assured its users in affected regions that they can still utilize Binance Pay. Binance’s US-based counterpart, Binance.US, is a new development for the company. They have recently partnered with MoonPay to enhance their platform’s fiat payment services. This collaboration aims to strengthen the exchange’s ability to facilitate fiat-to-crypto transactions. Binance is shifting its focus toward its core products and services, while also expanding reach and improving its fiat payment capabilities through strategic partnerships.