On October 20, Binance, one of the world’s leading cryptocurrency exchanges, announced the discontinuation of its Visa debit card services in the European Economic Area (EEA), effective December 20. Notably, this move does not impact users’ Binance exchange accounts.
The decision to terminate the Binance Visa card services is rooted in the card issuer’s action. Contis Financial Services, the Lithuanian electronic money institution and currency exchange operator responsible for issuing the card, has decided to cease its card operations. Contis is owned by the German banking-as-a-service platform Solaris Group, which operates in 30 European countries.
The Binance Visa debit card, initially introduced in the EEA in September 2020, allowed users to convert their crypto holdings in Binance accounts into local currencies. This enabled them to use their cryptocurrencies for in-store and online purchases. The European Economic Area (EEA) encompasses all 27 European Union member states, along with Iceland, Liechtenstein, and Norway.
This move is the latest in a series of challenges for Binance. It comes on the heels of Binance restoring euro deposits and withdrawals, which had been unavailable for a month following the termination of its relationship with payments processor Paysafe. Additionally, Binance is still not accepting new users in the United Kingdom due to the loss of a third-party service provider.
In the United States, Binance.US suspended U.S. dollar deposits earlier in the year and warned of impending withdrawal suspensions. However, the exchange has partnered with MoonPay to allow U.S. users to purchase Tether (USDT) on the platform. Recently, Binance.US announced that American customers can convert fiat into stablecoins to withdraw funds.
It’s worth noting that Binance’s partnership with Mastercard has also faced challenges, with Mastercard ending collaborations in Argentina, Brazil, Colombia, and Bahrain back in September. Regulatory scrutiny has been cited as a potential reason for this breakup.
The termination of Binance’s Visa debit card services in the EEA highlights the ever-evolving regulatory landscape surrounding cryptocurrencies and the adjustments that crypto service providers must make to comply with local regulations and maintain operational continuity.
,){kind=link}