Binance, a major player in the cryptocurrency exchange sector, has officially announced the discontinuation of its Visa debit card services in the European Economic Area (EEA), with this change set to come into effect on December 20, 2023.
This decision, disclosed in a formal statement released on a Friday, is part of Binance‘s ongoing response to increased regulatory pressures and challenges, reflecting the broader landscape within the cryptocurrency industry. Importantly, this move will not impact users’ Binance accounts.
The card issuer, Contis Financial Services, an electronic money institution and currency exchange operator owned by Solaris Group, will cease to issue Binance Visa Debit Cards in the EEA. Holders of these cards, issued under the EEA program, will have until December 20, 2023, 00:00 (UTC+0) to utilize their cards, after which point card purchases will no longer be possible.
Binance Puts Forward an Alternative Solution
As Binance’s card services within the EEA wind down, the cryptocurrency exchange has made a commitment to provide an alternative solution for its users. They have recommended the use of Binance Pay, a cryptocurrency payment technology, to facilitate shopping with cryptocurrencies at compatible merchants.
The Introduction of the Binance Visa Card
Binance originally introduced the Visa Card to the EEA in 2020, allowing users to convert and spend their digital assets at over 60 million locations worldwide. The EEA encompasses all 27 European Union member states, in addition to Iceland, Liechtenstein, and Norway. While the card enjoyed widespread adoption, Binance has noted that only a small fraction of its users, approximately 1%, will be affected by this change.
Navigating Regulatory Challenges
This decision comes on the heels of a series of setbacks for Binance and its US affiliate, Binance.US. Recently, Binance announced that US customers would only be able to withdraw dollars by converting fiat into stablecoin. Meanwhile, Binance.US suspended US dollar deposits in June and issued a warning regarding the suspension of withdrawals.
Binance Visa Card – A Crypto-Fueled Debit Card
The Binance Visa Card functions much like a traditional debit card, but with a cryptocurrency twist. It empowers users to hold digital assets such as BTC, BNB, SXP, and BUSD. The card is seamlessly linked to a Card Wallet within the Binance user account, allowing for easy fund replenishment from the user’s spot wallet. When making purchases, the card automatically converts cryptocurrency funds into local currency, facilitating spending at millions of locations globally.
This decision to discontinue the service comes after Binance recently reinstated euro deposits and withdrawals, which had been temporarily unavailable due to the departure of payments processor Paysafe.