Cryptocurrency exchange Binance is suspending its crypto bank card services in Latin America and the Middle East starting from August 25th. The crypto bank cards functioned like other bank cards that allow users to make daily payments, with the only difference being that these cards were funded with cryptocurrency assets.
Binance and Crypto Card Service
Binance first announced its plans for crypto-backed bank cards in April 2020, with a focus on entering the global payment market. As of July 2020, these crypto bank cards started to be sent to European countries and several other countries around the world. The cryptocurrency exchange later partnered with payment processor Swipe, focusing on offering crypto bank cards in the United States.
The suspension of crypto bank card services came to light after a user in Colombia raised concerns about their crypto bank cards. Binance responded to the query with an announcement stating that the bank card services would be suspended starting from August 25th without clarifying the issues that led to this decision.
Decision Made After Discussions
The crypto bank card services in Latin America and the Middle East will end on September 21st, but the exchange claims that refunds and disputes will be resolved by December 20, 2023. Binance stated that only 1% of users will be affected by the decision, but it was discovered that tweets from the Binance CEO regarding the crypto bank card and the responses on X were deleted.
Cryptocurrency exchange Binance will suspend its crypto bank card services in Latin America and the Middle East starting from August 25th. These cards offered the possibility of making daily payments with cryptocurrency assets. Binance first announced this service in 2020 and it was then launched worldwide. However, following the controversy sparked by a user’s issue in Colombia, Binance made the decision to halt these services. The services will end on September 21st, but refunds and disputes will be resolved by December 20, 2023.