Binance is getting ready to suspend its cryptocurrency debit card services in the Latin America and Middle East regions. This suspension will begin on August 25th. The impact of this pause, according to Binance, will only be felt by 1% of the users within these specific regions.
The operation of the cryptocurrency debit card closely resembled that of regular debit cards, allowing users to carry out day-to-day transactions. The key difference lay in the source of funds, which originated from their cryptocurrency holdings.
Binance aims to fully cease its provision of cryptocurrency debit card services in Latin America and the Middle East by September 21st. Despite this, the exchange guarantees that processes for refunds and dispute resolution will remain operational until December 20, 2023.
Developments Surrounding Binance’s Cryptocurrency Debit Card Services and User Impact
The root of this suspension can be traced to a user on the X platform (formerly known as Twitter). This user raised concerns about issues with crypto debit cards in Colombia.
Subsequently, Binance revealed its decision to halt debit card services, effective August 25th. However, the specific reasons behind this choice were not provided.
Furthermore, in April 2020, Binance introduced the concept of debit cards supported by cryptocurrencies. The goal was to establish a presence in the worldwide payment sector.
By July 2020, these debit cards backed by cryptocurrencies were sent to various countries in Europe and around the world. Following that, the cryptocurrency exchange partnered with payment processor Swipe, aiming to introduce crypto debit cards in the United States.
Although Binance claimed that only 1% of users would be affected, instances occurred where Binance CEO Changpeng Zhao‘s posts about this announcement, as well as the responses, were deleted.
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