Binance, a cryptocurrency exchange, has stated that it will discontinue its Binance-branded Visa debit card offering in Europe on December 20 due to increasing regulatory constraints. Binance announced in a letter to clients that its card issuer, Contis Financial Services, will discontinue support for the European Economic Area (EEA) debit card program beginning next month. The EEA includes all 27 EU member nations, as well as Iceland, Liechtenstein, and Norway.
The Binance Visa card allowed customers to transfer crypto assets held on the exchange into local fiat currency for real-world purchases and ATM withdrawals. The service was rolled out in the EEA in September 2020, with plans to expand it globally.
However, Binance admitted in a statement that only about 1% of its total user base actively used the Visa debit card. The company did not elaborate on what precipitated the abrupt termination of the sale. The move coincides with Binance’s recent regulatory challenges in Europe and the United Kingdom.
Binance just announced new partners to handle euro transactions after being dropped by Paysafe in September. It is still prohibited from accepting new UK consumers. Binance’s capacity to deliver fiat on-ramps vital to its exchange operation has been significantly impacted by the cascading loss of key banking and payment partners.
While crypto debit cards are only a minor part of Binance’s business, limiting services owing to banking issues risks further weakening the company’s presence in Europe. The business stated that the card program discontinuation will have no effect on Binance accounts. However, the increasing regulatory barriers Binance confronts across jurisdictions continue to stymie its global expansion.
Meanwhile, Binance apparently banned crypto debit cards in LATAM and the Middle East in August. The explanation is related to regulatory hurdles as well as challenges with crypto debit cards in Colombia.
Similarly, Binance banned multichain token deposits and withdrawals in July. According to the corporation, this invention was made in reaction to unexpected situations with protocols such as Multichain, which can cause significant disruptions to typical services.
More From The Kangaroo Times