Cryptocurrency exchange Binance will suspend its crypto debit card services in Latin America and the Middle East from Aug. 25.
The crypto debit card worked like other debit cards, allowing users to pay for day-to-day goods and services. The only difference is that these cards were funded by cryptocurrency assets.
The crypto debit card services in Latin America and the Middle East will be terminated by Sept. 21, but the exchange claimed refunds and disputes can still be processed until Dec. 20, 2023.
The issue first came to light when an X (formerly Twitter) user enquired about issues with crypto debit cards in Colombia. Binance responded to the query with an announcement suggesting that debit card services will be suspended starting Aug. 25 without clarifying what led to the decision.
The Binance Card will no longer be available to users in Latin America and the Middle East. The product, like most debit cards, has been utilized by Binance’s users to pay for basic daily expenses but in this case, the cards are funded with crypto assets. Only a tiny…
— Binance Customer Support (@BinanceHelpDesk) August 23, 2023
Binance first announced its plan for crypto-backed debit cards in April 2020 as it aimed to enter the global payment market. By July 2020, the crypto debit cards were being shipped to European countries and several others worldwide. The crypto exchange later partnered with payment processor Swipe, with intentions to offer crypto debit cards in the United States.
Cointelegraph reached out to Binance about the possible reasons behind suspending its crypto debit cards in Latin America and the Middle East, but the exchange did not provide this information. However, Binance told Cointelegraph that “only a tiny portion of our users (less than 1% of users in the markets mentioned) are impacted by this.”
While Binance claimed only 1% of such users would be impacted by the decision, some of Binance CEO Changpeng Zhao’s X posts about the announcement and responses to it were deleted.