Binance to Stop Offering Crypto Debit Cards in LATAM and ME

Binance announced it will stop providing crypto-based debit cards in Latin America and the Middle East in a recent tweet. The company said users in these regions can use the Binance Card until September 21, when the product will no longer be available.

The crypto exchange announced on Thursday that Binance intends to cease offering crypto debit cards in Latin America and the Middle East. Users of Binance crypto debit cards in these regions will have until September 21 to stop using the product.

“The Binance Card will no longer be available to users in Latin America and the Middle East. The product, like most debit cards, has been utilized by Binance’s users to pay for basic daily expenses but in this case, the cards are funded with crypto assets.”

– Binance announced on Twitter.

According to the announcement, less than 1% of Binance users will be impacted by this move, while accounts in other global markets will not be affected.

Although Binance did not officially disclose the reasons behind the decision, crypto and financial experts believe the move could be associated with the ongoing regulatory crackdown on the company. For instance, the UK payment processor Checkout.com recently cut ties with Binance due to these concerns.

The largest crypto exchange has been sued by the US Securities and Exchange Commission in June and saw its application to enter Germany rejected by the country’s regulators. Meanwhile, French authorities are investigating Binance’s local arm over potential money laundering activities.

In the meantime, Binance has been ramping up efforts to expand its ‘Binance Pay’ service, which it describes as “a contactless, borderless, and secure cryptocurrency payment technology.”

Just days before the announcement to stop offering crypto debit cards in Latin America, the cryptocurrency exchange launched Binance Pay in Brazil, citing high crypto adoption rates in the country. The new offering allows local merchants to receive payments in Brazilian Real or dozens of cryptocurrencies within seconds.

The latest developments suggest that Binance may see Binance Pay as a more robust growth catalyst for those specific regions such as Latin America and the Middle East. Last month, the crypto trading platform obtained a license to offer broker-dealer services in Dubai.

This article originally appeared on The Tokenist

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