Binance, a major name in the cryptocurrency world, is set to retract its Visa debit card services within the European Economic Area (EEA) by December 20, as announced on October 20. This development follows an unexpected halt by Contis Financial Services, the Lithuanian-based card issuer operating under Germany’s Solaris Group umbrella. Significantly, this change affects users across 30 European nations but does not influence their Binance exchange accounts.
The Binance Visa card, known for easing crypto-based transactions, operates by converting digital currencies into local cash, making regular purchases seamless for holders. Introduced in 2020, it gained traction among crypto enthusiasts in the 27 EU countries, Iceland, Liechtenstein, and Norway. However, the recent announcement indicates that only 1% of global users will experience this direct impact.
The change in Binance’s operations is part of the recent challenges the exchange has faced. Just a day before the latest announcement, Binance reactivated its euro deposits and withdrawals, a service that remained offline due to a standoff with the payment processor Paysafe. Additionally, the company’s operational hiccups are wider than Europe. Its American counterpart, Binance.US, underwent similar struggles, suspending dollar deposits and creating a roundabout withdrawal system via stablecoin conversions.
Binance’s stumbles don’t end there. In another significant blow, Mastercard terminated its collaboration with the crypto exchange in several countries, including Argentina, Brazil, Colombia, and Bahrain, in September. This move was widely interpreted as a response to the increasing regulatory scrutiny surrounding Binance.
Moreover, the United Kingdom persists in its standoffish approach towards Binance, maintaining a ban on new user registrations. This decision stemmed from the company losing a crucial service provider, crippling its regional functionality.
Consequently, these setbacks underline the mounting challenges Binance faces amidst tightening global regulations on cryptocurrency exchanges. These changes’ ripple effect emphasizes the crypto industry’s precarious nature, particularly concerning partnerships and regulatory compliance.
