Binance pulls plug on Visa debit card in Europe
Binance will cease offering its Visa debit card to European customers. The card will remain functional for existing European Economic Area cardholders only until December 20th, as stated in a blog on Binance’s support website.
This change affects about 1% of Binance’s clientele, confirmed a spokesperson from the company. The Binance Visa Card, launched in September 2020, had been accessible to users from European nations such as France, Germany, and Spain.
The Binance debit card allows users to utilize their cryptocurrency assets to make purchases in stores or online, similar to how a traditional debit card issued by a bank would work.
The card service also ceased operations in the Middle East on August 25 and in Latin America on September 21. This move came shortly after the exchange decided to shut down its crypto payments service, Binance Connect, in order to refocus on its core products.
Despite discontinuing the debit card services, Binance explained that users will still be able to process refunds and disputes until December 20, 2023. The company also clarified that this change won’t impact Binance accounts globally. Users will still be able to shop with crypto and make use of Binance Pay, a contactless and secure cryptocurrency payment technology developed by the crypto giant.
The exchange’s actions are also taking place against the backdrop of regulatory challenges and inquiries from various partners. Earlier in August, London-based payment processor Checkout.com terminated its contract with Binance due to concerns over compliance and money laundering. Binance refuted Checkout.com’s reasons and is considering potential legal action. This decision followed a similar move by Paysafe Payment Solutions, which stopped offering its SEPA payments to Binance.
Binance’s decision also comes at a time when leading card companies, Mastercard and Visa, have been reassessing their association with the crypto giant. This reconsideration follows intensifying scrutiny from US regulatory bodies. Specifically, Visa had already halted issuing new co-branded cards with Binance in Europe since July.
In addition to these legal battles, Binance’s relationship with the traditional banking sector has been deteriorating. The exchange faced exclusion from the US banking system in February and encountered challenges in accepting certain bank transfers from Australia in May. Adding to its woes, the exchange shut down its Binance Connect feature during the summer, which previously facilitated businesses to accept crypto payments via Visa and Mastercard.
