The world’s largest crypto exchange, Binance, has revealed plans to shut down its crypto card services in the European Economic Area (EEA). This development comes amidst the heavy regulatory pressure on the prominent exchange in several nations across the world.
Binance Visa Debit Card Issuer To Shut Down Program In December
According to a post on October 20 via its official blog, Binance confirmed intentions to terminate its Visa Debit Card Services in the EEA, which includes all 27 member states of the European Union alongside Iceland, Lichtenstein, and Norway.
The Seychelles-based exchange had previously communicated this development to all affected customers via email. It has been revealed by multiple sources that UAB “Finansines passages ‘Contis,'” the Binance Visa Debit card’s issuer, is canceling the program in the next two months.
The Visa Debit Card is one of Binance’s many products, which allows users to instantly swap crypto assets in their Binance accounts for local fiat currencies, which can be used to purchase goods and services.
Following the exchange’s official announcement, its customers in the EEA can only use this card service up to 00:00 (UTC+0) on December 20, 2023, after which the card becomes non-functional.
Binance has stated that all EEA users’ accounts will remain unaffected. Furthermore, the exchange also proposed its Binance Pay service as an alternative means for users to conduct transactions with registered local merchants.
Finally, Binance clarified that its latest directive applies to all member states of the EEA, including the Republic of Ukraine, which finds itself in a long-lasting war with the Russian Federation stretching as far back as February 2022.
In April 2022, Binance launched its Refugee Crypto Card service as a means to aid Ukrainians, displaced as a result of the war, in conducting financial transactions in EEA countries and dealing with their immediate financial needs.
Albeit, this program will be scrapped alongside the exchange’s other card service in the European Economic Area.
Binance Faces Fresh Challenges
For many market speculators and crypto enthusiasts, Binance’s announcement to terminate its Visa card service in the EEA only represents the latest setback for the exchange, which is currently facing mounting regulatory scrutiny across the world.
In August, a similar event occurred in which the payment service Mastercard terminated its crypto card partnership with Binance, forcing the exchange to shut down its card service in Latin America and the Middle East.
For context, Binance is currently under investigation in France and Australia and has been denied operational licenses in Austria, Netherlands, and Germany over the last few months.
Meanwhile, the exchange is in a hectic court battle with the US Securities and Exchange Commission (SEC) as it looks to clear the 13 criminal charges leveled against it by the US Securities Market Regulator.
Earlier this week, Bitcoinist reported that Binance.US has now suspended dollar withdrawals by its customers, becoming a crypto-only exchange. In June 2022, the Binance affiliate terminated dollar deposits after the SEC reportedly “coerced” the exchange’s banking partners into ending all existing business arrangements.
Total crypto market valued at $1.1 trillion on the hourly chart | Source: TOTAL chart on Tradingview.com