Binance, the world’s leading cryptocurrency exchange, recently announced its decision to discontinue its Visa debit card services within the European Economic Area (EEA) starting from Dec 20, 2023. The move comes after a successful three-year run since the product was initially introduced in Sep 2020.
The decision to discontinue the Binance Visa debit card services directly affects various users and specific humanitarian initiatives. One such initiative is the Ukrainian Refugee Crypto Cards program, which started in April 2022 and provided verified refugees with a complimentary card and a monthly balance of $75. Unfortunately, this program will now be terminated due to the decision.
According to recent data from Bloomberg, approximately 1% of Binance’s customer base will be impacted by this choice. However, it is essential to note that Binance has stated that the broader functionalities of European customer accounts will remain unaffected.
Although, Binance suggests alternative ways to conduct transactions. One option is the Binance Pay app, which allows for crypto transactions with compatible merchants, a feature highly valued within the crypto community. Additionally, the company has confirmed that cashback rewards on transactions will continue, providing users with ongoing benefits. Replacement card orders will be accepted until Dec 6.
Mastercard Exits Partnerships With Binance: Regulatory Winds Of Change
The Binance Visa debit card simplifies converting cryptocurrencies held in users’ Binance accounts into local currencies. It allows them to seamlessly purchase using their crypto funds in physical stores and online. Furthermore, it’s important to note that the European Economic Area (EEA) includes not only the 27 member states of the European Union but also Iceland, Liechtenstein, and Norway.
Binance is undergoing a strategic transformation, evident from its recent cutbacks in services worldwide. For instance, they have terminated their card services in Latin America and the Middle East.
Moreover, in June 2023, Binance ended its association with Paysafe, a prominent bank transfer service. This move adds to the growing list of discontinued offerings by Binance. The company has also scaled back its operations in countries such as Austria, The Netherlands, and Cyprus. Furthermore, they have withdrawn licensing applications in Germany.
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Mastercard terminated its partnership with Binance in several regions, including Argentina, Brazil, Colombia, and Bahrain in September. The end of these partnerships has been attributed to regulatory scrutiny. Binance is actively adjusting to the evolving regulatory landscape and the changes within the global financial ecosystem.
The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.
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