Binance, the world’s largest cryptocurrency exchange, announced the termination of its crypto debit cards for customers in the Latin America and Middle East regions from September 2023.
According to a response to inquiries by an X (formerly Twitter) user, the Binance crypto debit cards will no longer be available in the affected regions from September 21.
Binance Halts Crypto Debit Cards in Select Regions
A crypto debit card, just like similar products, enables users to handle their daily expenses. The difference is that this type is funded with cryptocurrencies.
Binance said the card termination affects a “tiny portion” of its customers – less than 1% of users in the select regions.
“Users of this product will have until September 21, 2023, when the card will no longer be available for use. Binance accounts around the world are not affected. Where available, users can also shop with crypto and send crypto using Binance Pay, a contactless, borderless and secure cryptocurrency payment technology designed by Binance,” the exchange’s customer support team said.
The crypto trading platform provided no further information about why the debit card was terminated and when/if the affected users should expect another one. The development comes just one year after the firm launched the Binance Card in Argentina and over six months after the product was unveiled in Brazil.
Binance Faces Regulatory Hurdles
Binance has faced regulatory challenges leading to issues with some partners lately. The American Securities and Exchange Commission (SEC) recently sued the company over allegations of operating as an unregistered national securities exchange, broker, and clearing house.
The firm is also facing scrutiny from the American Justice Department (DOJ), the Commodity Futures Trading Commission, and regulators in other regions.
Recent coverage by the Wall Street Journal disclosed that the DOJ is probing the exchange over possible violations of sanctions against Russia, its financial institutions, and individuals of interest as the platform continues to handle significant trade volumes denominated in the nation’s official currency, the ruble.
Furthermore, Binance discontinued its buy-and-sell service, Binance Connect, last week, barely a year after its launch. The exchange claimed the move was essential to realigning its focus on primary products and long-term objectives.
However, Forbes reported that the service was halted because Checkout.com, a London-based credit card processing company and Binance’s partner, terminated their relationship due to regulatory compliance and money laundering concerns.