In a recent statement released on Aug. 24, Binance announced that its popular crypto debit card, Binance Card, will no longer be available in Latin America and the Middle East starting from Sept. 21. This shocking announcement comes as a major setback for the exchange and its users in these regions.
The Binance Card is a unique offering that allows users to use their digital assets for everyday transactions, similar to a conventional debit card. One notable difference is that funds on these crypto debit cards are stored in digital assets. Binance proudly states that its card is accepted by over 60 million merchants worldwide.
While Binance clarified that the suspension of its card services would only impact a small portion of its users in Latin America and the Middle East, it is still a significant blow for those affected. Meanwhile, Binance accounts in other parts of the world remain unaffected, highlighting the targeted nature of this decision.
Coinciding with the suspension of its card services in Latin America, Binance recently launched Binance Pay in Brazil. This free, contactless, and secure cryptocurrency payment option supports over 70 cryptocurrencies. Guilherme Nazar, the general manager for Binance in Brazil, believes that this service will be particularly beneficial for Brazilian businesses due to the country’s high crypto adoption rates.
Although Binance has been making significant strides in Latin America, the exchange is currently facing heightened regulatory scrutiny in other parts of the world. Just last week, London-based credit card payment processor Checkout.com terminated its relationship with Binance. This move was attributed to concerns regarding Binance’s alleged issues with anti-money laundering, sanctions, and compliance controls.
Binance’s struggles with regulators extend beyond the United Kingdom. The exchange recently shut down its crypto payment service, Bifinity, and disabled its Binance Connect service. Binance cited the service provider’s decision to end support for card payments as the reason behind these closures. As the regulatory landscape continues to evolve, Binance finds itself caught in the crossfire, facing obstacles in multiple regions.
The suspension of Binance Card services in Latin America and the Middle East is a significant setback for Binance and its users. However, the exchange remains committed to providing innovative crypto payment solutions, as demonstrated by the launch of Binance Pay in Brazil. As Binance navigates the challenging regulatory landscape, its ability to adapt and overcome these obstacles will determine its future success.