In a recent announcement, Binance, the world’s largest cryptocurrency exchange, has revealed its plans to discontinue its debit card services in the European Economic Area (EEA) by December 20, 2023. The move marks a significant change in the cryptocurrency landscape, impacting users who had come to rely on the Binance Visa Debit Card in the EEA.
According to a blog post released on a Friday, Binance emphasized that this decision will not have any adverse effects on users’ Binance accounts. The blog post stated, “Binance Card services will no longer be offered in the EEA, but you can use your existing physical or virtual card as usual until 20 December 2023, 00:00 (UTC+0). Your Binance account will not be affected. We apologize for any inconvenience.”
The Binance Visa Debit Card was first introduced in the EEA in 2020, providing users with the ability to convert and spend their digital assets at more than 60 million locations worldwide. The EEA encompasses the 27 member states of the European Union, along with Iceland, Liechtenstein, and Norway. While the card was widely adopted, it’s important to note that only around 1% of Binance’s users are expected to be directly affected by this upcoming change.
An image shared by a Binance user online revealed that Contis Financial Services, the card issuer responsible for the Binance Visa Debit Cards, will also cease operations, with a message suggesting that users should destroy their cards on December 20, 2023, by cutting the chip and magnetic strip.
For those users who will be impacted by the discontinuation of the Binance Visa Debit Card, Binance has proposed an alternative solution – Binance Pay. Binance Pay is a cryptocurrency payment technology that allows users to shop with cryptocurrencies at supported merchants, offering a seamless and secure payment experience.
This decision by Binance follows a series of challenges faced by the cryptocurrency exchange, as well as its U.S. affiliate, Binance.US. In recent developments, Binance.US restricted its U.S. customers, limiting them to withdraw dollars by converting fiat currency into stablecoin. Prior to this, the platform had suspended U.S. dollar deposits and issued warnings regarding the suspension of withdrawals.
Notably, in August, Mastercard announced the termination of Binance-branded cards in Latin America and the Middle East, which had previously permitted crypto-based purchases.
Experts have speculated that the termination of these partnerships may be a direct result of the legal challenges that Binance is currently confronting. The U.S. Securities and Exchange Commission (SEC) has accused the exchange of operating an unregistered business and disseminating misleading information regarding risks. Additionally, the U.S. Commodity Futures Trading Commission (CFTC) has charged Binance with “willful evasion” of U.S. law. These legal challenges have spurred a series of changes in the way Binance operates within various regions around the world.
