Following the termination of partnerships with Visa and Mastercard, Binance, the world’s largest cryptocurrency trading platform, has announced the discontinuation of its Visa debit card services in the European Economic Area (EEA). This move comes as a result of Binance facing regulatory struggles and challenges with major card providers.
Background
In September 2020, Binance introduced its Visa debit card in the EEA, allowing users to convert their cryptocurrencies into local currencies and use them for both online and in-store purchases. The card aimed to provide European residents with the convenience of converting and spending cryptocurrencies at over 60 million online and physical stores across the EEA.
“With the Binance Card, European residents can convert and spend cryptocurrencies in over 60 million online and physical stores,” the company had said.
However, on December 20, 2023, Binance will discontinue its Visa debit card services in the EEA, affecting its users’ ability to use their existing physical or virtual cards for transactions. Despite this change, Binance exchange accounts will remain unaffected.
It is important to note that the discontinuation of Binance’s Visa debit card services will also impact the Ukrainian Refugee Crypto Cards program, designed for verified refugees.
Impact and Future Plans
Although the termination of Visa debit card services may pose challenges, Binance assures its users that their main accounts in Europe will not be affected. Users can continue their transactions through the Binance Pay app, although it may have reduced acceptance compared to the previous Visa cards.
Binance has provided its users with the option to order replacement cards until December 6. Additionally, the cashback rewards program associated with the Visa debit card will continue to operate even after the discontinuation of the card services.
These recent developments, including the termination of partnerships with Visa and Mastercard, are part of Binance’s ongoing regulatory struggles. The exchange has faced legal action from the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over alleged violations and rule disregards.
Despite these challenges, Binance has been seeking alternative solutions to maintain its operations. It has partnered with MoonPay to enable U.S. users to buy Tether (USDT) and announced that U.S. customers can withdraw dollars by converting them into stablecoins.
While Binance has faced limitations and isolation from the traditional financial system, other institutions like PayPal and Visa have shown interest in expanding their involvement with digital currencies. Visa, for example, has announced its expansion of USDC stablecoin settlement capabilities and formed partnerships with Worldpay and Nuvei for pilot programs.
