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In a recent development, Binance, one of the world’s leading cryptocurrency exchanges, has declared that its Visa debit card services will no longer be available in the European Economic Area (EEA) after December 20. This decision comes after Mastercard ended its partnership with Binance in Latin America and Bahrain back in September. This is possibly due to regulatory concerns.
Card Issuer “Contis” Ends Support
The primary reason behind this decision is the discontinuation of support from Binance’s card issuer, Finansinės paslaugos “Contis,” or Contis Financial Services. Contis, an electronic money institution based in Lithuania and a currency exchange operator owned by the German banking-as-a-service platform Solaris Group, operates in 30 European countries. This shift will impact users who have been utilizing the Binance Visa debit card to convert their cryptocurrency holdings into local currencies, enabling them to make purchases both in physical stores and online.
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EEA Encompasses 30 Countries
The EEA includes all 27 European Union member states, along with Iceland, Liechtenstein, and Norway. The Binance Visa debit card was initially introduced in the EEA in September 2020, with plans to expand its availability in Russia and potentially the United States. A Binance spokesperson reassured users, stating that only around 1% of their user base would be affected by this change.
Binance Faces Ongoing Challenges
This move marks another challenge for Binance, which recently restored euro deposits and withdrawals following a month-long hiatus caused by payment processor Paysafe’s decision to discontinue services to the exchange. Moreover, Binance is still not accepting new users in the United Kingdom due to the loss of a third-party service provider.
Binance.US previously suspended U.S. dollar deposits in June and issued warnings about potential withdrawals. However, they later partnered with MoonPay to allow U.S. users to purchase Tether (USDT) on the platform. This week, Binance announced that U.S. customers could now withdraw dollars from their accounts by converting fiat currency into stablecoins.
Mastercard’s Separation from Binance
In a related development, Mastercard severed its partnership with Binance in Argentina, Brazil, Colombia, and Bahrain during September. Regulatory scrutiny was suggested as the underlying reason for this separation. Binance continues to navigate a complex landscape as it adapts to evolving regulations and market conditions.
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Disclaimer:
Please note that this article serves solely for informational purposes. As such, it is not financial advice. We strongly advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.
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