Latin America and the Middle East's cryptocurrency debit card services will be suspended by Binance

Binance, a prominent cryptocurrency exchange, is taking steps to discontinue its cryptocurrency debit card services in Latin America and the Middle East, effective as of August 25th. These cryptocurrency debit cards, which functioned just like regular debit cards, allowed users in these regions to make everyday purchases using their cryptocurrency holdings. The termination of these services in Latin America and the Middle East is expected to be finalized by September 21st, and users will have the option for refunds and dispute resolution until December 20, 2023.

The decision to cease these services was prompted by concerns raised by a user on the platform, who reported issues with the crypto debit cards in Colombia. In response, Binance announced that it would suspend its debit card services starting on August 25th, although the specific reasons for this action were not disclosed.

Binance initially introduced the concept of cryptocurrency-backed debit cards in April 2020, with the aim of tapping into the global payment market. By July 2020, these crypto debit cards had become available in Europe and other international locations. Later on, Binance partnered with payment processor Swipe with the goal of introducing crypto debit cards to the United States. Despite inquiries, Binance has chosen not to disclose the exact reasons behind the discontinuation of its cryptocurrency debit cards in Latin America and the Middle East.

Nevertheless, Binance has stated that the impact of this decision will be limited, affecting fewer than 1% of users in the mentioned markets. While Binance has emphasized that only a small portion of its user base will be affected, there have been instances where posts and responses related to this topic by Binance CEO Changpeng Zhao were removed.