Binance, the world’s largest cryptocurrency exchange, has decided to halt its Visa debit card service in the European Economic Area (EEA) due to ongoing regulatory challenges and the termination of partnerships with Visa and Mastercard.
In an announcement made on October 20, Binance revealed that on December 20, 2023, it would cease its Visa debit card services in the EEA. While this decision affects the use of Binance’s Visa debit cards, the exchange’s user accounts will remain unaffected, and existing physical or virtual cards can still be used as usual until the specified date.
“Binance Card services will no longer be offered in the EEA, but you can use your existing physical or virtual card as usual until December 20, 2023, 00:00 (UTC+0). Your Binance account will not be affected. We apologize for any inconvenience.”
Initially introduced in September 2020, Binance’s Visa debit card allowed users to convert their cryptocurrencies held in their Binance accounts into local currencies, facilitating the use of cryptocurrencies for both online and in-store purchases. The card was promoted as a means for European residents to spend cryptocurrencies at over 60 million online and physical stores across the EEA, including all 27 European Union member states, Iceland, Liechtenstein, and Norway. Additionally, the card offered cashback bonuses to users.
The discontinuation of this service will also impact the Ukrainian Refugee Crypto Cards program, designed for verified refugees. Despite the changes, Binance assures its users that their primary accounts in Europe will remain unaffected.
While transactions will still be possible through the Binance Pay app, it is worth noting that this option may have reduced acceptance compared to the Visa cards, which enjoyed the support of a vast network of 60 million global merchants.
Users have the opportunity to order replacement cards until December 6. Furthermore, the cashback rewards program will continue to operate, providing users with benefits even after the discontinuation of Visa debit card services.
Binance’s Decision Amidst Regulatory Challenges and Partnership Terminations
The decision to discontinue Binance’s Visa debit card services in the European Economic Area (EEA) is the latest in a series of setbacks for the exchange. In August, Visa terminated its partnership with Binance, and in September, Mastercard followed suit in several countries, including Argentina, Brazil, Colombia, and Bahrain. These actions by major card providers coincide with Binance’s ongoing regulatory struggles.
In addition to its European challenges, Binance recently restored euro deposits and withdrawals after a month of unavailability, which was caused by payments processor Paysafe discontinuing its services to the exchange.
In the United States, Binance.US suspended U.S. dollar deposits in June and issued warnings about potential withdrawal suspensions. To navigate these challenges, it partnered with MoonPay to allow U.S. users to purchase Tether (USDT) on the platform. Most recently, Binance.US announced that U.S. customers could withdraw dollars by converting them into stablecoins.
Binance has been facing mounting regulatory scrutiny in the United States. In June, the U.S. Securities and Exchange Commission (SEC) sued Binance and its CEO, Changpeng Zhao, for alleged securities rule violations. Earlier in the year, the Commodity Futures Trading Commission (CFTC) also sued Binance, alleging rule violations and improper access provision to American users—a matter that Binance has contested.
As these regulatory pressures intensify, Binance has faced increased isolation from the traditional financial system. The exchange encountered difficulties with the U.S. banking system in February and ceased accepting certain bank transfers in Australia in May. Additionally, Binance shuttered its Binance Connect service, which enabled businesses to accept cryptocurrency via Visa and Mastercard.
While Binance’s relationships with major card providers have deteriorated, traditional financial institutions such as PayPal and Visa have expressed interest in expanding their involvement in digital currencies. Visa, for example, has expanded its USDC stablecoin settlement capabilities to Solana and entered partnerships with Worldpay and Nuvei for pilot programs.
