Continuing to be the world’s largest cryptocurrency exchange in terms of volume, Binance has taken another step. The exchange has been facing issues with regulators for a long time. Although it did not attract much attention in 2021, these types of problems are gaining more prominence during bear markets when investors are concerned. Binance suspended its service, which it launched in December 2020.
Binance Visa Cards
Visa cards valid in the EU were announced on December 15, 2020. With these cards, crypto-supported payments could be made. The daily spending limit of the cards was $10,600, while the ATM withdrawal limit was $350. The cards offered up to 8% crypto rewards. We remember these types of cards very well in 2021 because at that time, Mastercard and Visa had started competing with each other.
FTX and many other exchanges had similar crypto-rewarding cards. So, what happened today? Binance announced that it would suspend Visa debit card services in the European Economic Area. The company also said that existing users could continue to use the card until December 20. Regulatory concerns are greatly worrying Visa and its competitors.
Binance Suspends Visa Card Service
Approximately two months ago, Visa and Mastercard announced that they would not work with Binance. According to the announcement made by the exchange today, customers who already have the cards will be able to continue using them until December 20. When announcing the good news about three years ago, Binance wrote the following:
“With the Binance Card, residents of Europe can convert and spend cryptocurrencies in over 60 million online and physical stores.”
However, now, due to regulatory uncertainty and their partners’ unwillingness to work with them, the card service has also been suspended. Binance, which was targeted by the SEC in June of this year and by the CFTC at the beginning of the year, may also face the US Department of Justice in the near future, according to rumors. In particular, the CFTC’s allegations involve crimes that could result in imprisonment.
On the other hand, Mastercard and Visa have not distanced themselves from crypto. Visa announced last month that it expanded its USDC stablecoin payment capabilities to Solana and formed partnerships with Worldpay and Nuvei for pilot programs. At the same time, both companies stated that they continue to have crypto plans and see significant growth potential in this field.
