Binance's decision to shut down its crypto debit card service will take effect on 25 August 2023. The crypto debit card functioned similarly to traditional debit cards, enabling users to make everyday purchases. The key distinction was that these cards were funded with cryptocurrency assets.
The termination of crypto debit card services in the specified regions will be completed by 21 September 2023. Binance has clarified that even after the service termination, refunds and dispute resolutions will continue to be processed until 20 December 2023.
The matter initially came to public attention when a user on X (formerly Twitter) raised concerns about issues with crypto debit cards in Colombia. In response to the query, Binance made an announcement indicating the suspension of debit card services. However, no specific reasons for this decision were provided at that time.
Binance's initial plan to introduce crypto-backed debit cards was unveiled in April 2020 as part of its strategy to enter the global payment market. By July 2020, these crypto debit cards were being dispatched to various European countries and other global destinations. Subsequently, Binance entered into a partnership with payment processor Swipe, with aspirations of extending the offering to the United States.
When questioned about the reasons behind the suspension of crypto debit cards in Latin America and the Middle East, Binance declined to provide details. The exchange did mention, though, that the impact would be minimal, affecting less than 1% of users in the mentioned markets.
In August 2023, Binance also revealed that it will shut down its Binance Connect crypto payments service to focus on other products. The company announced the impending closure of the buy-and-sell platform, which was previously known as Bifinity. This decision comes a year after its introduction, as outlined in an official statement by the company. According to Coindesk, the discontinuation of the service has been attributed to Binance's strategic inclination towards its core products and long-term objectives.
A spokesperson from Binance elaborated on this move, explaining that the company regularly assesses its array of offerings to ensure that its resources remain directed towards fundamental initiatives that are in line with its strategy. Officials from Binance also highlighted that the company’s business approach remains fluid, adapting to the evolving market dynamics and user requirements.
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