Binance has decided to ban crypto debit card services in Latin America and the Middle East and this action will be effective from August 25th. The exchange has not given a reason for implementing this decision. It went on to say that this will only affect 0.1% of the users.
Binance Halts Cryptocurrency Debit Card Services
The cryptocurrency debit card is a debit card that works like the normal cards issued by banks and any other financial institution. The difference is that the users of these cards fund them using their crypto assets.
The crypto debit cards will no longer be effective by the 21st of September. However, Binance went ahead and asked for refunds and this has led to a dispute coming up. The disputes could be solved by December 20th but this will prolong the process.
An X (formerly Twitter) asked about why the crypto debit cards in Colombia had started experiencing problems. In response to the question, Binance announced that all the card services will be suspended from the 25th of August without giving a reason.
Hey Binance Colombia could you further explain what happened with the Binance card? What were the hurdles? Could we expect another card soon?
— Le gamin immigré (@Legaminimmigre) August 23, 2023
Binance first announced its plan to roll out cryptocurrency debit cards in April 2020 and in July 2020, they started shipping to a few European nations. They partnered with Swipe, a payment processor to enable transactions to take place in the USA.
Binance stated that this action would only affect 0.1% of the users. Binance CEO, Changpeng Zhao had deleted his posts and responses to the news on the X app.