The cryptocurrency exchange is pulling back amid significant changes in the global market
Binance has announced suspending its crypto debit card services in Latin America and the Middle East beginning on August 25. The crypto exchange didn’t reveal exactly why it’s ending the service, claiming it would only impact 1% of users in the regions.
The card allowed users to buy day-to-day goods and services like a typical debit card using cash funded by cryptocurrency assets. The service in Latin America and the Middle East will be discontinued by September 21, with Binance pledging to process refunds and disputes through December 20, 2023.
The problem with the crypto card service was discovered when an X (formerly Twitter) user posted an inquiry about card issues in Colombia. Binance responded by announcing that it would suspend services on August 25 without explaining why it came to that decision.
Binance had aimed to enter the worldwide payment market when it announced plans for the crypto debit card in April 2020. By July, the cards were already being shipped to Europe and other countries worldwide. Binance then partnered with Swipe, a payment processor, to distribute its crypto debit card in the US.
While the company asserted that only 1% of users would be affected by the suspension, many X posts from Binance CEO Changpeng Zhao and responses about the announcement have been deleted.
The value of BNB, a digital currency closely associated with the exchange, recently plummeted to its lowest point in over a year. This downfall came as a result of the emergence of fresh risks associated with Russian sanctions, which further compounded the already mounting legal challenges and pressure faced by the business.
On Tuesday afternoon, the token plunged to $204, reaching the lowest point it had seen since the cryptocurrency market collapsed in June 2022. However, it has managed to slightly reduce those setbacks and is currently being traded at $205, demonstrating a decline of approximately 14% for the week.
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