Binance Visa Debit Card Services to Close in the European Economic Area (EEA)
Binance has announced that it will be shutting down its Visa debit card services in the European Economic Area (EEA) on December 20. However, this closure will not affect Binance user accounts.
Contis Financial Services to Stop Issuing the Binance Card
The Binance card is issued by Contis Financial Services, a Lithuanian electronic money institution and currency exchange operator owned by the German banking-as-a-service platform Solaris Group. According to a letter posted online by Binance, Contis will cease issuing the card.
Using Crypto for Payments in Local Currencies
The Binance Visa debit card allows users to convert their cryptocurrency holdings into local currencies, enabling them to make purchases both in physical stores and online. The EEA includes all 27 European Union member states as well as Iceland, Liechtenstein, and Norway.
And here goes the #Binance Visa Debit Card!
First Paysafe providing EUR on/offboarding, now Contis providing the debit card, what’s next? pic.twitter.com/e7EF7G7CVN
— Michael ⚡️S⚡️ (@M_affirmed) October 20, 2023
“Although Binance users from around the world have enjoyed using [the Binance Visa debit] Card to make day-to-day payments with crypto assets, only around 1% of our users are impacted by this change.”
Another Setback for Binance
This closure of the Binance Visa service adds to a series of setbacks for the cryptocurrency exchange. It comes just after the restoration of euro deposits and withdrawals, which had been suspended for a month after payments processor Paysafe terminated its relationship with Binance. Additionally, Binance is currently unable to onboard new users in the United Kingdom due to the loss of a third-party service provider.
Hot Take: Binance Faces Obstacles in Expanding Its Crypto Payment Services
Binance’s decision to shut down its Visa debit card services in the EEA highlights the challenges faced by cryptocurrency exchanges in expanding their payment offerings. While some users have enjoyed the convenience of using crypto assets for day-to-day transactions, this change will only impact a small percentage of Binance users. However, it is worth noting that setbacks such as the termination of partnerships with payments processors and service providers can hinder the growth and adoption of crypto payment solutions.
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