Binance Visa debit card service in Europe will be discontinued due to regulatory scrutiny and retrenchment. Existing cardholders can use their cards until Dec. 20, as per BBG.
Binance is reportedly discontinuing its Visa debit card service in Europe. The decision comes as Binance faces increasing regulatory scrutiny and retrenchment from major financial partners. Existing cardholders in the European Economic Area will still be able to use their cards until December 20. However, new applications for the Binance Visa Card are no longer being accepted.
Impacts of Binance Visa debit card discontinuing
According to a Binance spokesperson, approximately 1% of Binances user base will be affected by this change. The Binance Visa Card allowed users to convert and spend cryptocurrencies at over 60 million online and offline merchants worldwide. It was made available to users in European countries such as France, Germany, and Spain.
Binances partnership with Visa has been scaled back, with Visa ceasing the issuance of new co-branded cards with Binance in Europe since July. The move follows increasing regulatory pressure on Binance from US authorities, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The SEC has sued Binance and its CEO Changpeng Zhao for securities rule violations, while the CFTC has accused the company of allowing American users to access the exchange in violation of regulations.
Financial Isolation and Executive Departures
Binance has faced challenges in maintaining relationships with traditional financial institutions. It was cut off from the US banking system earlier this year and lost the ability to accept certain bank transfers in Australia. Binance also closed its Binance Connect service, which enabled businesses to accept crypto payments via Visa and Mastercard. Additionally, the company has experienced several executive departures, including the recent resignation of Saulius Galatiltis, CEO of Bifinity UAB, a payment processor connected to Binance.