Binance, the world’s largest cryptocurrency exchange, has announced that it will be discontinuing its crypto-backed debit card in Latin America and the Middle East. The card service will terminate in the Middle East on August 25 and in Latin America on September 21.
The decision was announced in a social media post that did not provide a reason for the move. However, Binance said that less than 1% of its users in the regions would be affected.
The debit card allowed users to use their crypto assets to make transactions in shops or online as they would with a debit card issued by their bank. The card has been available in Latin America for less than a year: It was rolled out in the region’s second-biggest country, Argentina, last August and in Brazil, the largest, in January.
The move follows shortly after Binance shut its crypto payments service, Binance Connect, which allowed merchants to accept payments in cryptocurrency. The decision was taken by Binance in order to refocus on its main products, the exchange said earlier this month.
Why is Binance Discontinuating Its Crypto-Backed Debit Card?
The reasons for Binance’s decision to discontinue its crypto-backed debit card are not clear. However, there are a few possible explanations:
- Regulation: The cryptocurrency industry is still heavily regulated, and Binance may have been facing challenges in complying with regulations in Latin America and the Middle East.
- Competition: The crypto debit card market is becoming increasingly competitive, and Binance may have been struggling to compete with other exchanges that offer similar services.
- Focus: Binance may be shifting its focus to other products and services, such as its cryptocurrency exchange and its blockchain ecosystem.
Whatever the reason, the discontinuation of Binance’s crypto-backed debit card is a significant development in the cryptocurrency industry. It remains to be seen whether other exchanges will follow suit, or whether the market for crypto debit cards will continue to grow.