Binance Will Shut Down VISA Debit Card Services in December
Binance and Mastercard partnership came to an end in September for Latin American and Bahrain consumers. The most likely cause of the venture ending is regulatory constraints. On this account, Binance is set to halt Visa debit card products for the European Economic Area (EEA) in December.
The company made the announcement recently and retained that Binance exchange account holders will remain unchanged. Binance posted a notification for its consumers on social media informing them that Binance car issuer Contis has stopped issuing new cards for its consumers.
Contis Financial Services is based in Lithuania working as a digital payments processing firm and forex exchange. The firm is supervised by a German company called Solaris Group. This group is operational in around 30 EU nations.
Binance Visa debit card allows users to convert their digital currency holdings into fiat currencies and make virtual currency payments for online purchases. There are 27 nations in EEA including non-EU nations such as Liechtenstein, Norway, and Iceland.
Binance Asks Users to Use Binance Pay to Make Crypto Payments
Binance has informed its users that they can use Binance Pay as a contactless, borderless, and secure transaction option. Binance Visa debit card was introduced for EEA region in September 2020. The exchange had plans to extend the service for consumers in Russia and USA.
A spokesperson from Binance recently told media that account holders from around the globe have enjoyed the debit card option for everyday transactions using virtual currencies. However, the halting of the service will impact 1% of Binance consumers. Nevertheless, the revocation of visa card is another added obstacle to the international exchange.
Binance to Face a Series of Lawsuits
Binance is currently embroiled in a series of lawsuits from regulators in various jurisdictions. The announcement for the closure of visa cards arrived only one day after Binance reopened euro deposits and withdrawals.
Binance had also shut down euro payment options when Paysafe exited the payment contract. On this front, Binance exchange is still not adding new consumers from the United Kingdom due to the departure of its third-party services provider.
The USA is one of the most contentious places for Binance exchange. The firm is facing lawsuits from the SEC and CFTC, two major financial regulators in the country. Binance.US stopped USD deposit options in June and talked about the possibility of halted withdrawal options.
Binance partnered with MoonPay to allow consumers in the United States to purchase USDT token on the trading platform. At the same time, the firm informed the clients that they could make USD withdrawals by converting fiat to stablecoins.
On the other hand, Mastercard has halted partnerships with Binance for Latin American nations such as Argentina, Colombia, and Brazil. The contract for Bahrain also ended in September.
