Binance, the world’s largest cryptocurrency exchange, has announced that it will stop offering crypto credit card services in Latin America and the Middle East from August 25, 2023.
The crypto credit card service, launched in partnership with Mastercard, allowed users to pay for everyday expenses with their crypto assets stored on Binance. The service was available in four countries: Argentina, Brazil, Colombia and Bahrain.
Binance did not disclose the reason for the suspension, but said that it was a “business decision” and that it would continue to provide other crypto products and services to its customers.
Users who have used the crypto credit card service will be able to process refunds and disputes until December 2023, according to Binance.
The suspension comes amid a series of regulatory challenges and legal actions faced by Binance in various jurisdictions around the world. The exchange has been accused of violating securities laws, facilitating money laundering, and operating without proper licenses by authorities in the US, UK, Japan, Germany, Italy, Hong Kong and other countries .
Binance has denied any wrongdoing and said that it is committed to complying with local regulations and cooperating with regulators. The exchange has also hired former US Senator Max Baucus as its policy and government relations advisor to help navigate the complex regulatory landscape .
Mastercard, on the other hand, has confirmed that it will end its card partnership with Binance in the four affected countries, starting from September 22, 2023. The credit card giant did not give a specific reason for the termination, but said that it follows “the highest standards of security and compliance” for its crypto card programs.
Mastercard also said that it remains open to working with other crypto partners and that it has no impact on any other crypto card program. The company has partnered with several other crypto exchanges and platforms, such as Gemini, Wirex and BitPay, to offer crypto payment solutions to its customers .
The crypto credit card service was one of the initiatives launched by Binance to bridge the gap between crypto and traditional finance. The exchange also offers a crypto debit card service in Europe and Asia, which allows users to convert their crypto assets into fiat currencies and spend them at over 60 million merchants worldwide . It is unclear whether this service will be affected by the suspension.
The suspension of the crypto credit card service is likely to disappoint some users who enjoyed the convenience and flexibility of paying with crypto. However, Binance said that it will continue to explore new ways to enhance its crypto offerings and support the growth and innovation of the crypto ecosystem.
