Like other debit cards, the crypto debit card is a brainchild of Binance that allows its users to pay for day-to-day goods and services, using funds from their loaded crypto assets.
Top crypto exchange Binance has announced a plan to halt its crypto debit card services in the Middle East and Latin America. According to an earlier announcement, the suspension begins on Friday, August 25.
It all started when a Colombia-based user raised concerns on Twitter about having issues with the crypto debit cards in his location. Binance, however, simply responded that it was halting debit card services. That is without giving an official explanation of what might have informed the decision.
Subsequently, however, the platform has shared that affected users still have a ‘grace period’ of about a month before the suspension takes full effect on September 21. Therefore, users may continue using the card, as they normally would, during the period. However, the exchange also stated that it will continue processing refunds and disputes until December 20, 2023.
Like other debit cards, the crypto debit card is a brainchild of Binance that allows its users to pay for day-to-day goods and services, using funds from their loaded crypto assets.
The exchange has also attempted to play down the overall effect of its latest decision on its global payments ambitions. According to Binance, only a very small percentage (1%) of its users in the affected regions use the crypto debit card product. So, ultimately, global Binance accounts will not be significantly affected by the decision, the platform says.
Moreover, the exchange also insists that its Binance Pay product is another very good alternative for secure and borderless crypto payment. So, users in Latin America and the Middle East may tap the alternative where available.
Is Binance Still Keen About Entering the Global Payment Market?
It remains unclear, how exactly this development will affect Binance’s ambitions of the global payment market. Recall that Binance first announced its plan for crypto debit cards in April 2020. By July of the same year, it was already shipping the cards to European countries and several other locations worldwide. Since then, Binance has also partnered with payment processor Swipe, as it also looks to bring crypto debit cards into the United States.
Despite what initially appeared to be a keen interest in global payments, however, reasons for pulling out its crypto card services from Latin America and the Middle East are currently vague. As of publication, efforts by Coinspeaker to get an official statement regarding the situation have proven abortive.
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